Samsung Profits Fall Due To Decline in Mobile Sales
Samsung are reporting that they have suffered their first annual earnings decline in 3 years, which they are putting down mainly to a decline in mobile phone sales. We have reported on several Chinese smartphone manufacturers taking a market share from the likes of Samsung and it is the mobile market in China that Samsung have apparently been hit hard. Samsung have faced major competition from the likes of Xiaomi and other cheaper brands of smartphone. China is an important country for many mobile firms as it is the world’s largest smartphone market.
Obviously another major contribution to the profits fall was the release of Apple’s iPhone 6 and iPhone 6 Plus as the bigger screens that Apple had steered clear of for so long were finally upon us to offer direct competition to the Samsung Galaxy range of phones. Ben Bajaran is an analyst at research company Creative Strategies and he said: “And now with Apple being competitive in larger phones, you’re seeing Samsung losing any edge they had at the high end”
Samsung said in a statement: “The mobile business will focus on increasing sales and improving business performance through new product line-ups, such as the Galaxy A series.”