Samsung confirms decline in market share in first half of 2014

2014 hasn’t been the best year for Samsung. The Korean manufacturer has seen its profits decline over the last year, and its market share has been eroded in important markets like India and China in the past couple of months. Till now, details on the company’s market share were based on reports from third-party analysts, but Samsung has itself confirmed that it did indeed see a drop in both market share and profit. In the first half of 2014, Samsung’s market share dropped to 24.9 percent, down 1.9 percent from the same time last year, as it shipped around 223.69 million units during the first six months.

Samsung’s revenues and profits also declined, with the smartphone business resulting in a drop of 19.5 percent in profit to 6.25 trillion won (US$6.11 billion), though the company did well in the TV, displays and memory businesses. As expected, the rise of Chinese manufacturers in the low-end and mid-range markets and saturation in the high-end segment are being touted as the main reasons behind the decline, and Samsung is expected to make a comeback with handsets like the Galaxy Note 4 and, to some extent, the Galaxy Alpha.

Via | Source

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2 years 8 months ago

The big issue for Samsung at this point is that 2014 was more of a year where the specs did not go up all that much, and the big improvements were more subjective things, such as the improvements to the AMOLED display that can’t be shown on a spec sheet. Think about that for a moment, the display on the S5 was clearly better than the S4, even though both have a 1080×1920 display. You can explain that the newer AMOLED display is better, but without seeing it, people won’t really appreciate it. Going from LCD to AMOLED is similar, the Galaxy Tab 4 compared to the Galaxy Tab S, or even the Galaxy Note 10.1 2014 edition vs. Galaxy Tab S 10.5, the screen size isn’t going to help on a spec sheet, the resolution is the same between devices, so do the comparison in person, to see the difference.

Samsung has not gotten that through to people.

Now, when it comes to all those phone models, people don’t realize how things are in different markets. If you look at an individual market, there will NOT be that many different models, it is only when you look all around the world that you feel it gets out of hand. LTE vs. HSPA+, and then you get different frequencies used by come carriers, or even communication protocols, it makes it difficult. Without the need for LTE support, some versions of a phone can use a more power-hungry processor. In other markets, flagship devices don’t sell well at all, it is the low and middle range devices that sell. In the USA, you do NOT see a lot of different Samsung phones being sold for example, at least for the big carriers that have contract pricing or financing. For the smaller “budget” carriers where the customer is expected to pay full price, you had better believe that many will be buying phones $400 and below rather than the $650-$950 you see for the full price on the top phones.

When it comes to software updates, keep in mind that most carriers put their own QA process on software updates, so Samsung could release software updates the day after Google puts out an Android update, and it will STILL take Verizon and AT&T 4-5 months before the update goes out. It isn’t that Samsung delays things, it is that carriers do. Samsung DOES need to do releases and test the customizations on every new software build, but if you see an update go out for even a single carrier or device, you can expect that Samsung is not the reason you are waiting.

Remember, if a device comes with a bunch of features, and an update would break even one of them(even if you don’t use it), the device manufacturer is basically required to make sure that feature will work, and that CAN take time. On the flip side, there are many updates that do very little, so it makes sense that Samsung may skip some smaller updates. Is the jump from 4.4.2 to 4.4.3 really going to be so big you will complain it hasn’t come out yet for example? From 4.3 to 4.4 is worth complaining about the wait.

2 years 8 months ago

No surprise here, they did not listen to their customers. When are they going to learn that a premium design/materials is important?

Further if they do not improve their customer service, their market share will decline further. In some parts of Asia (Sri Lanka specially) the customer service is dreadful and they do not honor the warranty given.

2 years 8 months ago

Samsung refused to listen to consumers. There are 2 big turnoffs for the new Sammy devices:

1) Samsung refusal to put back a radio receiver. Is Samsung’s answer still “use your data connection to listen to internet radio”? Maybe data is cheap in S Korea but not the rest of the world

2) What’s this replacing the menu capacitative key? Think most people find it more useful than task list. Hope tgey dont remove the capacitative keys all together coz it is the only differentiation from a LG phone (I can live with a non-amoled screen)

3) why does Sammy have to manufacture so many models? Haven’t they learnt from Nokia?

Sure hope they start listening

2 years 8 months ago

This was inevitable Samsung has been very careless for far too long has neglected its support base ie the customers i for one will never buy another samsung product again it has been a year since i bought a galaxy note 8.0 n5100 and am still awaiting the kitkat update in India keep it up Samsung you are not too far from losing it all

2 years 8 months ago

I’m Big Big Fanboy of Sammy. Personally I myself own a Note 2 & I’m pretty much satisfied with it.

Here IMO are few points & things which Samsung should sit, think & discuss to regain its Lost Market Share :
1. Manufacture Less Models & please don’t flood the market with the variants of same Model because finally when it comes to buy the customer gets confused.
2. Provide Full Android Update support to each & every Model that you release as said upto 18 months which is clearly said by Google. By doing this the Customer will remain Loyal to your Brand & won’t look here & there to Switch Over.
3. Price your all Models sensibly as it is clearly visible in the Market that the Hardware & Features that your released Models incorporate are easily available at 1/2 or 1/3rd the Price with other Brands.
4. Please Please Please Spend Less on Advertising & Marketing. Samsung is already the Top Handset Maker in the World & they don’t require any attention. Any Model that you’ll release is going to create Buzz & Hype for sure & that’s why there’s simply no need to spend Billions & Trillions of Dollars on Advertising & Marketing IMO. Spending Less on both these above mentioned things will cut-off the Price of Your Models to a great extent & will bring you back in competition with other Local & International Brands. At that time needless to say People will blindly go with Samsung Phones as the Brand Name tells everything.

Follow these Steps & I’m pretty damn sure that No Handset Maker can let you fall behind in the Race of Mobile Phones. I personally want you to see at the Top & pray that You stay there for many more light years to come.

Good Luck SAMSUNG !!!

We’re with You & will be there for You.

Thanks a lot
Loyal Sammy Fan

2 years 8 months ago

Only left to say “We told you…”


2 years 8 months ago

They are only concerned in selling their units but don’t have any concern for customers are having issues with their units.

2 years 8 months ago

They are only concerned in selling their units but don’t have any concern for customers who are having issues with their units.

2 years 8 months ago

Sammy’s solution: 100 new crappy phones and useless software to increase costs and recover the lost market share.

If they could only see that less is better… but no. People want to search for a phone and they want to be able to compare. People don’t want 1.000 options. That’s ridiculous.
Also, making 6 or more models of the SAME PHONE is just crazy. Someone needs to get fired in this company.

2 years 8 months ago

You’re right, Icmazza.

What We’re asking for is so less… So tiny.

Well, let’s see. May be Samsung will hear our requests ;)