Anyone’s surprised? Anyone? Anyone? Didn’t think so… While Microsoft and Blackberry need to cut down their prices to be competitive in the over-saturated market, Samsung is still gorging out. Well, good for them. According to the latest report, Samsung’s net profit for the last quarter was 7.8 trillion won (~$7bn) and it increased around 50% compared to the 2nd quarter profits from last year. Samsung Electronics says the profit was boosted by the ever-growing smartphone and display panel sales. I bet launching Galaxy S4 helped them increase their sales as well.
Personally, I wasn’t as excited about Galaxy S4 as about Galaxy S3, but then again – what the hell, a good phone is a good phone, perhaps it has something to do with the fact that I don’t buy a new phone unless I really NEED it, but the people at Samsung Electronics themselves also agree that the expansion of the smartphone market is going to slow down. Robert Yi, head of investor at Samsung, has said that they “cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products”.
Quite a few market analysts have voiced out their opinion that Samsung might have to lower their smartphone prices as well, because it might be impossible to sustain such a fast growth. After all, Samsung managed to displays Nokia as “the world’s biggest mobile phone maker”. Yet, when you look at the market right now, the key threats seem to be low-cost smartphones from China, and people are always looking for the best price/quality option.
On the other hand, perhaps Samsung Electronics has no reason to fear its competitors, because it is involved in a lot more things than just smartphone making. Actually, quite a few people, who are not familiar with South Korea, have NO IDEA just how huge the Samsung Conglomerate is. Samsung Electronics is just one part of it, and it can easily boost its sales not only with smartphones, but also with display panels, because Samsung is also the biggest TV maker in the world. Granted, I’m also writing this blog staring at two Samsung monitors (double-monitoring owns, alright?).
So yeah, I guess even their market share were to shrink, Samsung is not going down any time soon. It’s just how huge it is…