A few weeks ago Samsung Electronics announced the financial results for Q3 2016 and the results are as miserable as expected.
The Note 7 cancellation fallout couldn’t be contained, and even tho Samsung avoided a loss in IT & Mobile unit, Q3 brought a 95% drop in operating profit. Still, if we take a look at Gartner’s latest report, Samsung remains number one regarding sales. Nonetheless, South Korean tech mammoth has experienced the biggest year-on-year market share drop in its history.
The Note 7 debacle is one of the reasons for this year’s bad quarter, but that’s not the only problem. Plenty of consumers are becoming price-conscious in their search for a new smartphone, which leads them to try out different Chinese manufacturers. The fact that China-based Oppo, Huawei, and BBK Communication Equipment have increased their presence worldwide isn’t helping Samsung. Not only have these three companies increased their sales numbers and market shares, but they can also be accounted for 21% of global smartphone sales in Q3 2016. This is a large piece of the global smartphone sales cake, and it is obvious that besides working on regaining their users’ trust, Samsung has to do more if the goal is increasing market shares.
Just like Samsung, Apple has also experienced a market share drop, and they have managed to lose some market traction as their sales have decreased.
It remains to be seen whether Samsung’s decline will continue, or whether the company will be able to change things up a bit.
We are looking forward to any news from Samsung as we are sure that they won’t sit idly while the competition is catching up to them and grabbing the pieces of the ever-expanding smartphone market. What are your thoughts? Will you continue using Samsung smartphones or are you thinking about checking out what the competition is all about?