Samsung has mobile phones in every segments and where there is no segment they created one using innovative strategies. But despite all the efforts and marketing campaigns the Korean company is falling short of expectation.
The revenues down to KRW 52 trillion ($51.5 billion) for the second quarter, from KRW 54 trillion a year ago, hurt by a slowdown in demand for smartphones and tablets and the stronger won. Operating profit dropped 23 percent from a year earlier to KRW 7.2 trillion ($7.1 billion), according to the preliminary figures. Although the numbers are still incredible, Samsung is taking definitive measures.
Samsung said it stepped up marketing in order clear excess inventory in sales channels ahead of planned new product launches in the third quarter. Inventory was especially high for mid-range and low-end devices, due to increased competition in China and Europe, the company said. The Chinese market was also hurt by weak seasonal demand and reduced 3G demand ahead of the expected expansion of LTE during the second half of the year. In China local companies like Xiaomi are outselling Samsung at this point.
But things are going to change when Samsung will roll out new devices in the later part of the year most likely the Galaxy Note 4 and it has plans to bring the refreshed version of Galaxy S5 to various new markets. Rumors also suggest Samsung is going to release Galaxy F which is a metallic framed Galaxy S5 with better processor and display.
