Samsung, the new King of the SmartPhone
Samsung’s smart phones are selling a lot. Samsung performed better than Apple in the third quarter with 38% of the market share compared to Apple’s 36%. There are new innovations that are in the pipeline such as the new curved Galaxy Round or the F line series which is slated to be the 2014 Samsung smart phone flagship. Samsung already has many smart phones that it sells to markets all over the world. These include the tremendously popular S series and the Galaxy S series. The only blip in Samsung’s 2013 financial record is a third quarterly decline in Galaxy S4 sales.
In June, Samsung sold around 7 million Galaxy S4s while in August, sales dipped to 5 million. That still makes it the top selling smart phone but even so, that is a remarkable dip in sales. The Galaxy S4’s dip in sales in the last few months can be attributed to two things. The first being the introduction of the new iPhone. The iPhone has come back into the competitive market with the new iPhone 5 and the iPhone 5C. It is stated that the new improved iPhone has taken away a little of Samsung’s market share but Samsung still maintains a lot more ground.
The other factor can be the fact that Samsung has two smart phones which are marketed as its flagships. The Galaxy Note 3, a niche phone with stylus capabilities, is offered as the other premium smart phone made by the company. Both phones are performing very well. In fact, the Note 3 was introduced as an experimental prototype aimed at an audience that still desired a stylus. Such was its success, due to its capabilities of use even without a stylus that the product became another mainstay. The Note 3 began to share some of the S4s market and with the new iPhone, may have caused sales of Samsung’s flagship Galaxy S4 to fall.
This brings another interesting thing to note and that is that Samsung has become an undisputed leader in the Smart Phone industry. Apple is the sole competitor but it is not a complete competitor as its more of a singular product based competition where the Galaxy S4 and the iPhone 5 go head to head. Samsung has entry level, mid-level and premium level smart phone which are selling with great success. With so many well selling options, Samsung has taken over a large share of market share. Other competitors such as HTC, Blackberry or Nokia are all struggling to put out products to challenge Samsung’s hold.
The success can be attributed to an attractive product with an aggressive marketing product. The quality of the S4 or the Note 3 are really good. However, that can be said for a lot of other competitors. The Blackberry z10 or the new Xperia are all laudable products but they do not enjoy the kind of marketing that the S4 enjoys. Samsung has gone all out on its advertising and the results show with an impressive haul in terms of profit.
The new technological improvement that is going through the research divisions of smart phone companies is the introduction of curved smart phone. LG has showcased its wacky curved smart phone which is curved from top to bottom whilst Samsung’s is curved from side to side. The impact of these improvements is yet to be seen as the products are not yet active in the market. The fact that there are so many improvements at such frequent intervals points towards the cut-throat market environment. Samsung however has set new standards with it current success with the competition.
Jackson is a tech-addict who scours the news ticker for the financial currents in the sea of the Information Technology market. He is also a financial journalist who writes columns for blogs on matters regarding competition performance, new technological improvements or market occurrences such as the dip in Samsung Galaxy S4 sales through the last couple of months.