Even if the mobile phone business is dead, samsung also isn’t finished

recently, samsung’s shares have fallen to their lowest levels in two years. Obviously, the mobile phone business continued downturn, pride of the south Korean company had already seriously affected the confidence of investors.

samsung’s more trouble: apple in the high-end market more competitive, and the Chinese manufacturers are constantly eating away at the low end the market share, resulting in the decrease of sales profit margin. And samsung mobile phone to just let a person feel big screen, function is much, but these are not consumers desire to the beauty of the design. Like the samsung Galaxy series are also has a lot of, but the Galaxy series new, should not be someone to the door of the best selling sleep in line on the paper box.

samsung have their own refinery, space division, chemical manufacturing, and is the main chip makers in the world, the world’s largest producer of electronics, and accounted for 1/5 of South Korea’s gross domestic product (GDP). Mobile phone sales to what extent the weakness of the will influence the development of samsung?

for samsung mobile phone business is indeed occupies a large proportion. Samsung mobile device sales during the first half of the year to account for around 56% of the company’s total revenue. (last year’s annual sales of $217 billion, mobile devices accounted for 59%)

even so, the prospect of samsung, and should not be so gloomy. Some smart investors are snapping up its shares, in their view, the market for samsung stock sell-off is too serious, actually in samsung semiconductor market is still growing.

maybe we are talking about the samsung, too much attention to the decline of samsung mobile phones in the world market, ignorance of samsung as dominance of electronics makers, lead to underestimate of samsung.

review of samsung group of nearly seventy years of history, you will find that samsung led respectively in different periods of household electrical appliances, microwave ovens, television market. When the business slows, samsung and took out a large amount of money to develop new areas, so as to occupy the mobile and smart phone market. (hint: samsung is still the largest seller of smartphones in the world, and every year still selling a lot of refrigerator)

bloomberg businessweek last year once published an article about samsung, this paper expounds the uniqueness of the samsung culture — paranoia, destruction and rebirth. This enables the company to enter a new field. This is the wisdom of the former samsung chairman lee kun-hee, he had concluded: “in addition to his wife and children, everything can be changed.”

for a major change in the market, if can’t accept, or improper handling, would provide a serious challenge to the company, sometimes can cause a break-up. American iron and steel company, kodak, Microsoft and the entire print media business is this sentence annotations. To adapt to the market is a large company one of the hardest things to do, but it has done very well.

now, samsung mobile phone business once, even if spend a lot of money on marketing, is to maintain the existing smartphone business. Maybe samsung are looking for a new development direction.

samsung r&d budget as much as $14 billion a year, is the amazon, apple, Intel, Google and Microsoft more than twice (apple only us $4.5 billion). Every year there are a large number of samsung’s global laboratory budget for battery technology, medical technology, energy-saving technology research and development, and smart home, etc.

the rise of mobile phones and mobile devices are still dominated by many high-tech conversation, and the mobile phone market is still growing at a rate of about 7% this year. But the boom will continue? Use of mobile devices in the world, samsung believes, should be at about 74% in 2014, at the same time, eMarketer, a research firm, according to data from 2014 to 2018 in the smartphone market growth will slow.

the standstill of samsung mobile phones, perhaps signal is not recovered. Maybe we will find soon, constantly commercialization makes mobile equipment market is becoming saturated, and the smart phone will be on the path of notebook and microwave ovens. Samsung is reflected this trend.

if you want to try to evaluate samsung mobile business, perhaps the best evaluation may be envy “apple”. Samsung also hope to and their opponent so sexy and innovation in California, but no. Samsung always seem one step behind, perhaps because samsung’s DNA are not included in the fashion and design and sexy.

let’s hope the samsung on a mobile device to the downturn, can again turn: focus on abundant resources and firm faith, focus on new business can bring good returns. After all, apple also is not necessarily the most perfect.

Source: WSJ

You may also like...