Samsung's mobile phone business is hit hard, and the empire may be coming to an end
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The gradual collapse of the Samsung empire has finally been substantively proven. Last week, Samsung Electronics released its second quarter 2014 financial report, which showed that Samsung's second quarter profit was lower than analysts' previous expectations, and said that it was still unknown whether the current quarter's profit would improve. Samsung's second quarter net profit was 6.3 trillion won, down 20% from 7.8 trillion won in the same period last year, which was Samsung's lowest net profit since the second quarter of 2012. Mobile business suffered a heavy blow, mobile phone sales were not as expected As the leader in the smartphone market, mobile business, namely mobile phone products, has always been the pillar industry of Samsung's profitability. According to statistics, from 2009 to 2013, the proportion of the mobile department in Samsung Electronics' total revenue increased from 37% to 68%, and in the first quarter of 2014 it was as high as 76%. In addition, Samsung Electronics also covers a variety of other businesses such as PC, TV, semiconductors, etc., and the weight of each business can be imagined. The sluggish performance of Samsung in the mobile phone product market that has been highlighted since this year is also the main reason for its profit decline. Samsung's current flagship smartphone Galaxy S5 has been criticized by consumers since its launch. The lack of highlight hardware parameters and mediocre design have made it difficult to resist the attacks of various competitors in the high-end mobile phone market. The third generation of Galaxy Note, Note3, another important player in Samsung's dual flagship strategy, is not as eye-catching as the previous two generations. The popularity of smartphones with screens larger than 5 inches has made the original advantages of Note products less and less obvious. According to data released by research firm IDC, Samsung's global smartphone market share in the second quarter fell from 32% in the same period last year to 25%. Affected by the decline in mobile phone sales, Samsung's mobile division's profit last quarter also fell by 30% to 4.4 trillion won, the lowest in two years. The gradual improvement of smartphone product development and user experience has made consumers more willing to try other brands of devices, especially for Samsung products that use the non-exclusive Android system, which does not give users a reason to stick to the brand again and again. Samsung's financial report did not disclose the sales of smartphones in the second quarter, but IDC estimated that Samsung's smartphone shipments in the second quarter were 74.3 million units, a year-on-year decrease of 4%, while global smartphone shipments increased by 23% during the same period. It can be seen that it is only Samsung that consumers have lost interest in. Samsung is about to be attacked from both sides with the arrival of the large-screen iPhone If Samsung wants to make a comeback in the second half of 2014, then the news that Apple will launch a large-screen iPhone is definitely not a good thing for Samsung. For ordinary users, the most intuitive reason to choose Android devices instead of Apple is that Android devices have larger screens, and the most representative of them is undoubtedly Samsung. However, Apple will also launch its own large-screen mobile phone products in the near future, which will be a "disaster" for all Android mobile phone manufacturers including Samsung. On the other hand, facing Samsung's decline, other Android device manufacturers will not sit idly by. From the product level, whether it is HTC One M8 or Sony Xperia Z2, in the first round of flagship battles for Android smartphones in 2014, other international brands have once again proved that they are capable of making products that are better than Samsung. In the domestic smartphone market, domestic brands are fully capable of making products with lower prices that are not inferior to or even surpass international manufacturers in terms of user experience. For domestic consumers, the acceptance of domestic smart products has also steadily increased in recent years. From Huawei, a "Fortune 500" company, to Xiaomi, which is "born for fever", they have become the main enemies that Samsung has to face in the market. "Change materials" or "focus on low-end", a dilemma to get out of the predicament Product material is one of the main factors affecting the overall performance of smartphones. After being criticized for "big plastic" for a long time, smartphone products using "new materials" have also appeared in Samsung's future development map. But can "changing materials" save Samsung? Let's take a look at the situation of products using "new materials". HTC One series products are absolutely unique in the smartphone industry for their persistence in metal materials. However, the efforts of two generations of products from M7 to M8 have only slightly improved HTC's market performance. On the other hand, LG, which is also from South Korea like Samsung, has always made its products plastic in nature, but from the polishing of two generations of Google Nexus products to the stunning debut of G3, it seems to be getting smoother and smoother. In addition, more powerful mid- and low-end smartphones will also become the future direction of Samsung, which means that the arrogant Samsung has finally begun to bow to the market and compromise. However, it is necessary to recognize that the mid- and low-end smartphone market, where domestic brands are divided, has achieved a stage where "cost performance" is difficult to match by international brands. In the market below 2,000 yuan, how international brands can give users motivation to buy in addition to performance may still rely on the gradually dimming brand value. " Changing materials" and "focusing on low-end" are the future planning strategies announced by Samsung recently, but just like Samsung's products, these measures are not attractive enough. For products made of the same metal material, why do users have to choose Samsung? Or for the same price, why would consumers choose products with weaker performance for a logo. Samsung's failure this year is the final result of digging a hole for itself. The lack of innovative product ideas and the high prices that are self-admiring have made it inevitable that the Samsung brand will "come down from the altar". Some industry insiders predict that Samsung's profit points in the future may be more dependent on its semiconductor business, because the mobile phone business is no longer likely to have explosive growth like in the past, but Samsung is still the world's largest memory chip manufacturer, which may also indicate that Samsung's mobile phone empire is gradually coming to an end. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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