Posted by Abhijeet M. 9 months ago

Smartphone growth to slow down in Q3 due to intensified competition, says Samsung

Samsung-offices

Despite seeing sales of smartphones at an all time high of 72 million units, Samsung believes that the company’s smartphone growth will slow down in the third quarter, owing to increased competition and the addition of more low to mid-range models to the portfolio.

The latter will also be responsible for a lower average selling price for the smartphones Samsung sells in the current quarter, something it has warned investors against, though margins are down even at the high-end thanks to the increased spend on marketing the Galaxy S4.

“The smartphone market will likely continue to grow in the third quarter, but there’s a chance that the pace of growth may slow as competition intensifies with new model releases.”

-Kim Hyun-joon, vice president, Samsung Mobile

The competition Hyun-joon mentions is going to be the hardest in the phablet category, as Sony is bringing the Xperia Z Ultra to compete with Samsung’s upcoming Galaxy Note III, so even if the latter is expected to be sold in the millions, it isn’t going to be as easy as it has been in the past. Even HTC is supposedly working on a phablet (the HTC One Max), and the HTC One has already given a slow yet noticeable fight to the Galaxy S4, so it is surely going to be a tough ride leading into the end of this extremely eventful year.

Of course, the fact that overall smartphone growth is also expected to slow down isn’t going to help the case for Samsung, so let’s just keep hoping the company continues to improve on what they’ve already put on the market, and makes their “next big thing” a force to reckon with.

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2 comments on “Smartphone growth to slow down in Q3 due to intensified competition, says Samsung

  1. gtone339 9 months ago said:

    Samsung should just focus on their efforts on launching the Galaxy Note 3 & their most anticipated smartphone….Galaxy SV

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  2. yackmaan 9 months ago said:

    Maybe it is time for all this great companies like Htc, Samsung, Sony to look at the software part.
    It is a big dissapointment to see that some devs may drop the support of your favorite app because of the older version of android (Gingerbread) which your device is running and it will never get an update to a superior version, because this great companies won’t give you one.
    Android 4.3 is out there and it’s a great update for my Galaxy Nexus, the phone is faster than ever.
    Thank you!

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