Samsung signs of recovery
From the hand of her latest versions of Galaxy with curved screen and metal casing, the South Korean company seems to regain ground against Chinese competitors in the segment of high-end smartphones. After nearly two years of suffering at the hands of emerging rivals and established giants, Samsung finally be improving. Lets talk about Samsung signs of recovery.
Your new smartphone, the Galaxy S6, has had strong sales. It has also replaced as chip maker TSMC for iPhone, manufactured by its main rival Apple. And its revamped product catalog could help Samsung to compete with low-cost devices that dominate the market of China.
You may also find evidence of a possible recovery in the line of profits. Samsung announced earlier this month it expected earnings for the first quarter of 2015 show that the decline in operating profit was still acute, but with a tendency to level off.
The resurgence of Samsung poses a direct challenge to Chinese brands of smart phones, which must find ways to compete outside their domestic market with the majors. The initial popularity of S6 could make it harder for Chinese companies do that with high-end products, said Bryan Ma, an analyst at research firm IDC.
Some of the biggest problems of Samsung have come from China, which has struggled to compete at the lower end with companies like Huawei and Xiaomi. The period of growth in the Chinese market is easing but analysts expect there booms in other developing markets such as India and Southeast Asia.
For Samsung, it sets new fronts competition where you can take advantage of brand recognition, its marketing and sales experience across the globe, to repel their Chinese rivals. For example, in India, in the fourth quarter of last year, Samsung won a market share of 22 percent, well above the 4 percent that had Xiaomi, according to IDC.
The launch of the S6 could help dull the stellar performance of the iPhone 6 , while it will exert more pressure on smaller rivals trying to make a name, and profit with distinctive, elegant and expensive devices.
The way the S6 now excels in the crowd will help improve sales of the company at the top end, which has the bulk of its profits. Samsung has not released official figures, but the South Korean media have reported that the company already sold 20 million units ahead of S6 operators of mobile phones. The S6 went on sale to the public in the US and Europe two weeks ago.