The South Korean company Samsung is not in a good position according to the report released by Counterpoint Research. According to them, the sales of Samsung Galaxy S6 or S6 Edge are not as expected. In addition, these are not the devices that are drawing the revenue to Samsung. Rather, this is the mid-range Galaxy J series that are actually helping Samsung to maintain its market place by driving the sales.
2014 was not really good for Samsung as they experienced huge drop in sales, revenue and overall profit. So, the aim was to reverse that situation by selling more and more flagship Smartphone. The reason is higher prices set draw more revenue per sale.
Source – www.forbes.com
The mid-range j series though helping this South Korean company to stay in the top but numbers of competitors are coming into the market with mid-range devices, all with higher specifications. So, it might be tough for them to maintain the sale.
This dropping sale of Samsung flagship is actually helping Apple to win the marketplace. They have reported that around 30% of their Smartphone has been shipped to android users. And this amount drew them higher profit than previous years.
So, what should be the next step of Samsung now to maintain the same marketplace? They should concentrate more on selling the low end and cheaper Smartphone. Also the money invested in development, and research should be reduced to maintain the profit.
Source- Forbes