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Samsung Struggling to Keep up With Chinese Smartphone Rivals



/ 2 years ago


Korean electronics company Samsung has emerged as a global smartphone and tablet powerhouse, but is now struggling to woo consumers in emerging markets.

Three major Chinese manufacturers, Lenovo, Xiaomi and Huawei are stepping up to the plate with powerful devices, available at a more affordable price point.

Here is what Kevin Restivo, an IDC European mobility analyst, recently said:

“Samsung has depended on smartphones to act as the profit engine for the company, but the phones don’t have the same luster.  There’s no question the market has entered a different phase, has evolved – and part of that evolution is falling prices.”

As consumers in the United States, UK and established western markets become familiar with smartphones, there is a sales and marketing shift towards emerging markets.  However, Apple and Samsung have largely priced themselves out of these markets, opening the door to cheaper Chinese smartphone manufacturers to step up.

It’s curious that Samsung has fallen in the same trap that Apple did with its iPhone and iPad tablets – a trend the Korean company tried to follow – and will need to be fixed as quickly as possible.

The company must also try to deal with slowing brand loyalty, a problem that Apple didn’t need to worry about for a long duration.

Thank you to The Globe and Mail for providing us with this information

Image courtesy of Hot Digital News


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