Samsung Earnings Take A 60% Hit, Reports That Galaxy Devices Not Selling Well

Business / Mobile / Tech

Bloomberg is reporting that Samsung Electronics earnings are taking a 60% hit due to slumping sales of their Galaxy smartphones. Competition from cheaper Chinese devices like Lenovo, Huawei, Oppo, Meizu and others are eating into Samsung’s market share. Of course there is also competition from Apple as well.

These results are prompting the electronics giant to think of a new strategy to regain those lost dollars. Pushing harder into wearables and connected home appliances are just a couple of ideas the company has.

“Samsung should really push beyond smartphones because we can no longer expect significant growth from the business,” said Yoo Eui-Hyung, an analyst with Dongbu Securities Co. in Seoul. “It’s time for Samsung to act more aggressively in seeking future growth areas, including more lucrative semiconductors and more web-controlled applications such as smart cars and smart homes.”

One of the biggest expenditures in Samsung’s arsenal is marketing. They’ve pushed hard to advertise and sell their Galaxy brand across all media platforms available and it’s noticeable that they’ve invested in social media as well. These kinds of slumps are common among electronics makers and Samsung is sure to bounce back at some point. The mobile market is a competitive market and every device maker is sure to hit a bump in the road on occasion. Hit the link below to read Bloomberg’s comprehensive write up.

  Source: Bloomberg
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