First it was the pc, then it was the tablet and now smartphone. The tech industry is changing fast and what previously considered as hot is now a thing to discard. The tablet industry has cool down just when it was seeing phenomenal growth. It fell so much that apple refused to release a tradition iPad this year, opting for the large screened iPad pro instead. Is the smartphone industry reaching its saturation point? Has the innovation died in the smartphones?
In midst of this storm is Samsung which was considered as the king of the smartphone world just a year back. It is now facing a slew of competitors in every segment that it has reigned supremacy. It is apple at the high end sales of the smartphone and Chinese and Indian smartphone makers at the low end.
Samsung is finding it hard to maintain its growth and profits have been declining for a record 7 straight quarters. To arrest the slide of its growth, Samsung has applied various tactics that invariably failed to produce the desired effect.
It first cut down the number of models that it releases by a third. It then slashed the prices of the smartphones and concentrated on the emerging economies such as India to fuel it grown. Samsung even discarded the plastic in its smartphones and embodied the metal and glass design to make their smartphones more premium and still apple cannot be defeated.
“Samsung is at a standstill,” said Kim Hyun-su, fund manager for IBK Asset Management. “It’s having trouble finding a way to create new demand for its smartphones.”
Share prices are failing slowly and the investor are losing faith in the company quickly. Samsung is hoping for a miracle that will bring back the previous glory to the company in the smartphone world. Samsung is still a smartphone leader in terms of units sold but for how long?