“Despite the launch of Galaxy S6, improvement to earnings
[from the first quarter] was quite marginal due to low smartphone shipments and
an increase in marketing expenses for new product launches”
Samsung's Press
Release declaring their earnings for the Second Quarter of 2015
Samsung just seems to be unable to catch a break.
The South Korean smartphone maker have recorded their
seventh Straight quarter of profit decline in the Second quarter of 2015 as
reported in the article “Galaxy
S6 fails to bring back Samsung's mojo”, published July 29, 2015 by Shara
Tibken, CNET News.
In fact, it's so bad that Samsung is planning to shave at
least US$100 off the price of their Samsung Galaxy S6 smartphones both in the
USA and UK as pointed out in my MICO
Wars Blog article entitled “Motorola
launches Moto smartphones to challenge the Apple iPhone 6S”.
So what does Samsung plan to do? Strike back with newer
smartphones, possibly with smaller screens and running Tizen!
Samsung Unpacked
Event in August 2015 – Apple defeat in Second Quarter of 2015 a small
Consolation Prize
They also plan to introduce new premium, mid-range and
low-end smartphone models, such as possibly a new Galaxy Note 5 and Galaxy S6
Edge Plus as well as an upgrade to the Samsung Galaxy Gear Smartwatch.
All will be revealed at a Samsung Unpacked Event set for
Thursday August 13th 2015 in New York City as reported in the
article “Samsung
sets Unpacked event for August 13 in NYC”, published July 27, 2015 by
Jessica Dolcourt and Shara Tibken, CNET News.
At least they've managed to beat Apple to become the most
popular smartphone maker in the Second Quarter of 2015 according to the sales
stats from analyst Trendforce as reported in the article “Samsung
tops Apple in slowing smartphone market”, published July 20, 2015 by Don
Reisinger, CNET News.
This is confirmed by statistics from analyst Strategy
Analytics for the same period as reported in the article “Samsung
regains smartphone sales crown from Apple”, published April 28, 2015 by
Steven Musil, CNET News.
So how bad was it that Samsung is now planning to reduce
their S6 prices? Pretty bad, actually!!!
Samsung's Second
Quarter Decline - Why Chinese smartphones are more attractive than before
First, a bit of historical perspective, as it wasn't always
like this as declines in the sales of Samsung products began in the Third
Quarter of 2014 as reported in my blog article
entitled “Samsung’s
declares 60% Profit and 20% Sales decline - Tizen OS Response needed as India’s
Diwali may Light a Path in November towards Future Prosperity”.
Before these declines, Samsung had posted five (5)
consecutive Quarters of record profits, starting with the Samsung Galaxy S3,
the smartphone that launched them to their status of king in the Smartphone
world.
Samsung's Second Quarter of 2015 Balance Sheet isn't bad,
really, as they’re profitable. But in terms of projections it falls below
expectations from stockholders when compared to the Second Quarter of 2014:
- 7.3% decline in sales to US$41.8 billion (48.54 trillion won)
- 4% decline in Operating Profit to US$5.9 billion (6.9 trillion won)
- 8% decline in Net Income to US$4.94 (5.75 trillion won)
Now, a sudden slowdown in the sales of smartphones is upon
the smartphone industry, with even competitors such as HTC and Singapore,
China-based Xiaomi declaring that their sales are being reported in the article
“Smartphones
aren't selling like they used to (it's an Android thing)”, published July
7, 2015 by Nigel Manuel, CNET News.
Even Samsung's main global rival, Apple, has lost its
dominance in the smartphone sales in Chianto rival Xiaomi based on figures from
Research firm Canalys as reported in the article “Apple
loses top spot in Chinese smartphone market to Xiaomi”, published August 3,
2015 by Lance Whitney, CNET News and “Apple just lost
its Chinese smartphone crown”, published AUGUST 3, 2015 by Jonathan Chew, Fortune.
Industry wide
smartphone Decline - Lack of innovation as Developing World and Western Invasion
Progresses
Apparently, the new smartphones coming out aren't innovative
enough for people to spend money to upgrade.
A bigger screen just can’t beat the lower price point for a
similar quality smartphones, especially smartphones are slowly trending back towards
a smaller size as predicted in my blog article entitled
“Celebrities
Return of the Flip Phones - Flip-Force Awakening Thanks to Fappening Herald
Smaller Smartphones and Smartwatch phones”.
One such example is TCL Corporation's US$200 Alcatel
OneTouch Idol 2 Mini now making a beachhead in the Caribbean in a push toward
the United States of America as detailed in my MICO Wars blog article
entitled “US$200
Alcatel OneTouch Idol 2 Mini is a Budget phone in Royal Metallic Robes”.
So many of these smartphone maker such as Samsung and Xiaomi
are slowly making a push into Developing and Third World Countries in a bid to
eke out some growth such as in India as reported in my blog article
entitled “Xiaomi
in India after success in China - Xiaomi Looks to the West as the World is
theirs for the Taking”.
There's even an allegation that Xiaomi may be coming to the
US of A and Caribbean sometime in early 2016, as they've already begun testing
the waters with their online Mi Store in the US of A as reported in the article
“If
you’re holding your breath for Xiaomi U.S. smartphone sales, you might want to
breathe”, published June 27, 2015 By Williams Pelegrin, DigitalTrends and “Apple's
biggest rival in China says it plans to start selling phones in the US”,
published July 16, 2015 by Steve Kovach,
Business Insider.
Samsung's Tizen
growth expectations - How Profit sharing with Users will boost smartphone Sales
Samsung has managed to sell some 1 million Tizen based
Samsung Z1 during the six (6) month period from January 2015 to June 2015 as
reported in my Geezam blog article
entitled “Samsung
sells 1 million Tizen smartphones while seeking Developers”.
Encouraged by this small but steadily growing sales, they've
recently announced at their Samsung's Tizen Developer Summit hosted in
Bangalore on Tuesday 30th June 2015 that they plan to use Tizen
2.3.1 instead of Android Wear as reported in the article “Samsung
holds first developer summit for Tizen in India”, published 30 Jul, 2015 by
ET Bureau, Economic Times of
India.
The successor to the Samsung Galaxy Gear will have some new features
,including a cicular face and a rotating bezel, in keeping with Android Wear
Smartwatches only with Tizen OS as reported in “Samsung
Gear Roundup: New Smartwatch to Run On Latest Tizen OS, Have Rotating Bezel”,
published August 3, 2015 By Sami Khan, International
Business Times.
Samsung Tizen open
doors for LiMo – How Profit sharing with customer will boost smartphone sales
So there is growth, just not for Google Android!
Thus I'm predicting that for smartphone to innovate, it
might have to adopt untried, untested smartphone OS, such as Tizen and even the
Mozilla Foundation’s Firefox OS through their Ignite Initiative as I'd
predicted in my blog
article entitled “Mozilla's
@Firefox OS and the Ignite Initiative - Wearables, Hipster Trend as Three
Chinese Dragons Dominate the Smartphone World”.
With 5G on the horizon in 2020 based on the ITU
(International Telecommunication Union) 5G IMT-2020 Roadmap as reported in my blog article
entitled “ITU
publishes 5G IMT-2020 Roadmap - Why US Telecom Providers, @Digicel_Jamaica and
@LIMEJamaica like to travel off the beaten Path” newer OS that allow
regular users with no programming knowledge to partake of the App Economy will
boost the sales of smartphones once more.
By supporting smartphone OS that adopt the Open Source LiMo
(Linux Mobile) architecture, it will free them from a dependence on Google
Android.
In a truly Open Source Mobile Environment, OS like Tizen and
Firefox OS will make it possible for smartphone makers, Telecom Providers and
end users (customers) to make money from the App Economy as predicted in my blog article entitled
“Digicel
and LIME's 4G LTE Adoption in Jamaica – Budget Tablets with Microsoft
Productivity Software spark Wireless Broadband Revolution”.
This was the original plan that the Telecom Providers had
envisioned when they'd adopted 3G Internet on their Network. This is how
Samsung can grow their smartphone sales, as by directly sharing profits with smartphones
owners, they create an incentive to owning Samsung Products.
No comments:
Post a Comment