This change in attitude symbolizes the rapid development of the mobile phone industry, with emerging markets showing strong growth. For Samsung, it hopes to regain the supremacy of emerging markets in 2015 and resist competition from local companies.
But Samsung is also forced to help. In the past few years, Samsung has made great progress and has become a giant in the mobile phone industry, but it seems that its future will not be as brilliant as it used to be.
Market research firm IDC showed that two-thirds of the market's mobile phones sell for less than 200 knives, and the number of low-cost mobile phones continues to increase; iPhone 6 and Galaxy S5 and other high-end mobile phones that cost more than 500 knives account for 16% of the market. %, by 2018 it may fall to 14%. In China alone, an estimated one third of consumers in 2015 will choose cheap mobile phones.
Forced helpless
Emerging markets used to be Samsung's private reserves. However, its competition with Apple is mainly on high-end mobile phones, and it still dominates the low-end market that Apple has not entered. Samsung has achieved great success by dumping old cheap mobile phones to China. However, a fatal mistake has been made: Consumers in emerging markets do not need outdated, outdated technologies. They are looking for high-end mobile phones with cabbage prices. Other manufacturers catered to the needs of consumers and quickly occupied the market share that had belonged to Samsung.
Before Xiaomi replaced Samsung’s dominance in the domestic mobile phone market, Samsung had already claimed 10 seasons. This shift took place in the second quarter of 2014. As of September, Samsung’s share of the Chinese mobile phone market has fallen by 9 percentage points from last year to 13%. The situation in India is slightly better. The market share in the third quarter still ranks first among the major mobile phone suppliers, at 23%, but it still has a year-on-year decline. The second-ranked Micromax followed closely behind with an 18% market share.
This decline also reflected in the third quarter of Samsung's sluggish profit report, mobile phone sales fell 74% compared to last year, taking into account the intense competition in the smart phone market in late 2014, Samsung's situation in 2015 is not optimistic.
At the same time, a market research company stated that Samsung’s share of the global smartphone market in the third quarter of this year has fallen to less than 24% from nearly a third of last year. Samsung is also the only company among the top five smartphone suppliers whose sales have dropped significantly.
Profit or share? This is a problem
In response to this situation, Samsung has vowed to make fundamental changes to its product line and is expected to cut its handset model by 25%-30%. At the same time, Samsung also plans to introduce new materials and newly designed smart phones, as well as high-quality low-end smart phones with more competitive prices.
In addition, Samsung also intends to use the Tizen operating system to enhance its position in India. It had planned to launch a smart phone based on the Tizen operating system in India at the end of 2014. However, this desire has not been realized. Tizen was once used as a means for Samsung to reduce its dependence on Android, and it also shouldered the mission of resisting the competition of low-end mobile phones in China and India. Tizen mobile phones will be priced at 100 knives, and Android One will compete directly.
Of course, these are not easy to implement. Perhaps Samsung will regain some market share, which must be based on the premise of sacrificing profits. The company can't ignore the high-end mobile phone market that creates its main profit. Samsung hopes to recapture the first throne and sacrifice profits.
Samsung must also make great efforts in software. It invested huge sums of money in software and hired hundreds of engineers to launch new businesses for the software solution center and other departments. But most of the efforts are not meaningful to consumers. But for the market, the level of hardware is not enough to make a company stand out from the crowd, and the status of software becomes more and more important.
The most important thing is that Samsung needs to find the crux of the company in the new year and avoid repeating the mistakes of Nokia and BlackBerry.
In any case, Samsung will be very difficult in 2015.
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