Here at UTB we’ve been trying to point out for quite a while now to our Androidian friends that when their comeback to any positive BlackBerry news is ‘Look at how many Samsungs are sold compared to BlackBerry’s (hur, hur)’ that it’s not about how many you sell, it’s about how many you sell compared to how many you NEED to sell to meet your budgets, a subject we covered quite extensively in our article Hey Samsung! The Upgrade Gravy Train Left Town Last Year….
You see, although Samsung are very tight lipped on sales figures there’s been many tell tale signs that all is not well, not least the effort carrier reps put into pushing a Galaxy 5 at people at every opportunity. I personally know of at least 4 people who entered a store with the intention of buying a BlackBerry and all 4 of them came out with the same, different, phone.
‘Because the rep told them so.’
Would you believe a Galaxy 5!
And it’s a story I’ve heard from many other sources too, even iPhonians are complaining about it.
Fact is that the SG5 has been a disaster in terms of lack of sales in comparison to what Samsung THOUGHT they would sell, they expected the public to roll over and upgrade, they always do, remember?
Only they haven’t.
And this has led to a problem.
As Mark Stone at TechVibes has explained, the Wall Street Journal isn’t impressed.
This wasn’t supposed to happen.
News from Wall Street Journal this week regarding Samsung paints a pretty shaky picture for Android’s top smartphone manufacturer.
It’s been almost two years since we’ve seen a new iPhone from Apple (the 5s being just a slight upgrade), and Samsung was expected to take full advantage. Between iPhone launches 5 and 6 (the latter is expected to be announced on September 9) in the major smartphone market Samsung has released the Galaxy S5, the Note 3 and the upcoming Note 4 on September 3. Combined with wearables and other products like the Galaxy Gear, Galaxy Camera and Galaxy Tab, the Korean manufacturer has been busy and consistently in front of consumers.
And yet Fitch Ratings, a major credit rating agency in the US, was much more bearish than bullish Tuesday on how they feel Samsung will cope in the competitive smartphone market over the next year. According to the Wall Street Journal, Fitch’s corporate rater Nitin Soni predicts that Samsung’s worldwide smartphone market share may fall from 31% this year to 25% in 2015.
In the WSJ report, Mark Newman, an analyst for Bernstein Research, also said in a note that Samsung’s future in the smartphone market could be compromised if not for “a drastic change in smartphone strategy.” After slashing his price target on the company, Newman said investors should “react now before it’s too late.”
Are things really all that bad for Samsung, or is Wall Street simply overreacting (as they’ve been known to do) to current market data? As much as I’d love to disagree with anything The Street has to say or prognosticate, I think they’re on the right track.
Now, Mark goes on to say that he thinks the reason behind this is because Apple have released iOS8 and they’re great and so on but he’s very wrong on that score as we have seen with Apple’s plummeting US market share. Also, despite the slavish devotion iPhonians show at upgrade time the feeling seems to be growing that not much is happening, that the iPhone 6 is just a bigger iPhone 5S with nothing extra really added so why spend the money?
Very similar to the Galaxy 4/Galaxy 5 issue.
I’ll be honest, we have known for some time just how reliant Apple are on the iPhone but to find that Samsung are just as reliant on smartphone sales comes as a bit of a shock.
So, with Apple and Samsung on the ropes having taken their customers for granted, who do you think is perfectly poised to clean up with a revitalised company and a new range of devices?
And one final thought.
If, as is widely rumoured, Samsung are the only company (other than Google, of course) to ever make any money out of the Android OS and they are floundering…
What’s the point of it?
The world is changing very fast, it seems.