Beleaguered Samsung

“There isn’t one single thing that’s ailing Samsung,” Jan Dawson writes for Beyond Devices. “It’s fighting (and losing) on multiple fronts at once:

• Apple continues to gain at the premium end of the market, and the new iPhone 6 and 6 Plus will make the situation even worse there for Samsung
• Other established Android vendors are taking share in the premium segment, especially LG, whose shipments (and margins) continue to rise
• Chinese vendors continue to make significant inroads in China, but Xiaomi is far from the only one, and some of them are making inroads in other emerging markets too, eating into Samsung’s low-end base
• Local vendors in certain other emerging markets, especially India, are also eating into Samsung’s share
• Ultimately, Samsung has failed to differentiate itself as an Android vendor. Nothing it has done for the past few years was inherently difficult for others to copy, especially given time and the emergence of the Shenzhen ecosystem. And that lack of differentiation is coming home to roost now.

Much more in the full article – recommended – here.

MacDailyNews Take:

Thermonuclear
Thermonuclear.

 
Dear Karma,

More pain for Samsung, please.

Much more.

 
Sincerely,

MacDailyNews

[Thanks to MacDailyNews Reader “mpias3785” for the heads up.]

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46 Comments

            1. Oh the TV is not hard to turn on, but good luck getting the channel you want, and it randomly freezes into the “Blue Screen of Death” channel.

            1. The little light is supposed to go off when you close the door, you meant, but you re right in that nobody can be sure…about anything when you think upon it…

      1. I think the idea is that Samsung isn’t going to go bankrupt any time soon. But they’re deservedly in a tizzy because they’ve blown major marketing bucks trying to sell their Apple wannabe junkware and it isn’t helping the fact that their profits are being devoured by Apple.

        IOW: Samsung is being soooo screwed. And that’s a good thing.

        1. True. They’re not dead yet. Neither are they going away, since they ‘only’ made a profit of $3.9 billion. Not exactly chump change. And they are a huge conglomerate with many different divisions.

          Still… May they continue to spend another $12 billion on A&P and marketing in 2015 because… hey, they got to protect and maintain their huge lead in market share and phones shipped (not sold) 😀

    1. Sad but true. I read in LCD TVs they did the same by copying Sony TVs. Dunno how true that is.

      Still, we can always hope their misguided efforts will cause them to pour more and more money (and profits) from other divisions into the sinkhole that is their Android mobile division in their quest for Market Share 🙂

      1. Sony actually made numerous bad bets with their TVs. They invested heavily in LCoS. Fantastic picture quality, but when the RPTV market collapsed, they could only recoup that investment in the niche front projector market. Sony invested in LCD and OLED technology as well. But, Samsung consistently managed to outmaneuver Sony because of how much more rapidly they could ramp up their manufacturing lines.

        Samsung’s strength is in their manufacturing prowess. They have the capacity to flood the market, and have the marketing budget to push out competitors at the retail level. Sony actually had to bite the bullet and enter into a joint manufacturing venture with Samsung just to remain in the LCD TV market. Samsung can go from concept to volume manufacturing in a matter of weeks. The ability to rapidly deploy multiple models was also Nokia’s strength, and we saw how that worked out.

        1. True, that bit about Sony’s missteps.

          But still, the reason why Scamsung could go from concept to volume manufacturing in a short span of time is because…? 😉

      1. Part of the problem is one device now takes the place of what were many before. And since there are much fewer mechanical parts these things last longer. That narrows it down to a few key players – like Apple. 😀

        1. You know, we can only hope that when Scamsung is heavily reliant on the semiconductor division to generate the bulk of its profits… Apple pulls the plug from under them by shifting production completely to other semiconductor manufacturers. Ahhhh… what a sweet, sweet day that would be 😀

          1. You know, Samsung could do something completely out of character and actually put a lot of R&D into their semiconductor manufacturing facilities and actually produce extremely high quality and high-efficiency integrated circuits that everyone will want. They won’t have to steal anything and just work hard.

            I know, I’m having a hard time keeping a straight face too 🙂 but it could happen.

            1. Yes: Imagine what could have happened had they shifted $12B from marketing to R&D? I think that’s the lesson they never understood from the Mac vs PC ad where PC was budgeting the majority of money to marketing (look how that worked out for Microsoft).

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