The company that took on Apple in the smartphone market is now facing declined profits.
Well it so no secret that Samsung has been facing some problems and has been struggling. The condition is so bad for Samsung that it has even had to freeze salaries for all of its employees in South Korea. With the introduction of the Galaxy SII Samsung made inroads into the smartphone industry and challenged Apple’s iPhone.
Samsung was so successful that by the end of 2012 the company’s profits were up by 76 percent just because of the mobile division. Moreover Samsung was the only company other than Apple that was making a profit in the mobile industry. However this success was short lived as profits for Samsung dropped in 2014 even during the normally lucrative holiday season. This decline in profits was blamed on increased competition in the mobile industry by Samsung.
Keeping all these problems in mind a report has been published which states about all the problems of the company. The report also focuses on its performance against companies like Apple and Xiaomi. The report has a specific section for comparing Samsung to Apple and dissects the performance between the two companies.
One of the most interesting portions of the report is that it gives details about the tensions between Samsung’s US and Korean headquarters. Everyone knows that Samsung rose very quickly to fame in the United States and during this quick rise the headquarters in United States began to outperform the Korean headquarters. This reason led to extreme tension within the company. Many even say that this tension is the fundamental reason that has led Samsung into the recent slump.
Moreover the report has also revealed that instead of receiving credit for its outstanding performance, Samsung’s United States team was treated poorly by the Korean counterparts which led to this tension. One such act was when the company sent a number of its executives from Korea to Dallas in order to audit the company’s United States headquarters.
The Korean executives went as far as accusing the US employees of reporting false sales, bribing the media and many other unheard of tactics. Well obviously after so much of humiliation for the United States executives a tension was bound to take place.
Then there was another instance of tensions between the two headquarters when the US team visited the Korean headquarters for a meeting. At the meeting the US team was made to stand up in front of several hundred of their peers in the auditorium and the executives told the employees to clap for the US team as they were the only group failing the company. This now was a false accusation and was in fact true for the Korean group.
Now Samsung will be unveiling its most important launch of the year on March 1 which is its flagship smartphone the Galaxy S6. How much will the company be able to cash on this new smartphone is yet to be seen.










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