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Samsung's mobile business has been falling for years

News by Luke Jones on Tuesday August 05, 2014.

samsung news · android news · industry news · luke jones

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The chart you see above shows how Samsung's smartphone business has declined since a peak of 90% two years ago, and it is exact evidence why some in the company are genuinely concerned. It is no secret that Samsung's mobile business has taken a bashing this year, but on this evidence things have been getting progressively worse for some time. While its sales have grown year on year, Samsung's growth has actually dropped continuously, not something that should be happening in a still growing smartphone market.

Jackdaw Research's Jan Dawson compiled the chart and says it points to some serious problems for Samsung, so much so that Dawson says the company is in danger of becoming "just another" Android vendor. At the moment it is not hubris on Samsung's part to think of itself as THE Android vendor, after-all the Korean giant dragged the platform with it on the rocket ship to success while other manufacturers dithered in the face of Apple's iPhone.

However, Samsung faces huge problems from competitors, especially in China where brands like Xiaomi are taking the fight to the company with arguably better, but definitely more affordable products. Samsung is getting it from all corners and its high end smartphone business has also taken a bashing at the hands of flagship competitors like HTC and LG, while the iPhone and Cupertino are an ever looming presence.

Dawson sees three alternatives for the company. Either Samsung just keeps on going as normal and just accept its new fate as just another company making smartphones, or the brand can go toe to toe with the Chinese brands and lower prices, lose margins, and go to war. The third alternative is that Samsung manages to find that killer product again, much like it did with the Galaxy S3 and Galaxy Note.

Of course, fans of other OEM's would want us to conclude here by saying Samsung is finished. However, when discussing the company's current woes, you should treat yourself to a sizeable dollop of perspective. Samsung's mobile division still counts profits in the billions, something rivals like HTC and LG would love to be able to do, and only Apple can compete in this aspect. Samsung is also a massive multifaceted organization that does not rely on smartphones to turn profit, if all fails the company just turns back to components and its various other enterprises.

However, smartphones are what turned Samsung from a company no one noticed to something of a cultural icon, alongside the likes of Apple. Smartphone sales have driven the company to giddy heights and given it huge market cache, so there is a genuine cause for concern within the walls and halls of Samsung HQ.

Just don't expect the company to do a Blackberry.

source: BGR

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About the author

Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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