This chart should scare the hell out of Samsung

Samsung Mobile Sales Growth Chart

Before looking at this chart, we should emphasize: Samsung is not “doomed.” It’s a hugely profitable company that has a lot more businesses than just smartphones and every other Android vendor can only dream of having the kinds of sales and profits that Samsung enjoys. That said, a new chart produced by Jackdaw Research’s Jan Dawson shows that things are definitely looking very bad for Samsung when it comes to the growth of its mobile phone business unit and the company is right to be feeling nervous.

samsung-mobile-scary-chart

This huge erosion in growth for Samsung’s smartphone sales is important because high smartphone sales are what has transformed Samsung from a very successful component supplier into being a massive, world-conquering profit monster. In fact, Dawson says that smartphone sales are so crucial to Samsung’s status as a tech titan that it needs to figure out some way to reignite growth again to make sure it doesn’t become “just another” Android vendor.

With this in mind, he sees three possible outcomes: Samsung keeps doing what it’s doing right now and sees its share slowly bleed out to upstart companies like Xiaomi and Micromax; it decides to live with lower margins and compete much more aggressively in terms of price with the upstart Asian firms; or it really figures out a way to add value to Android that doesn’t come across as gimmicky bloatware.

Dawson’s full analysis is worth reading and can be found by clicking the source link below.

Source:
Beyond Devices
blog comments powered by Disqus