Posts Tagged sales

Samsung Races Ahead Of The Mobile Market With The Galaxy S7

Samsung Galaxy S7 MelbourneSamsung seemed primed to dominate the mobile markets in 2012, with the launch of their flagship S3 smartphone. The S3 kickstarted a healthy market run, with five successive quarters of profits.

Unfortunately, Samsung weren’t able to keep their winning streak going, as each successive generation of Samsung Galaxies failed to capture their customers’ imaginations, leading to seven quarters of reported losses.

This decline seems to be turning around, as the South Korean electronics manufacturer reported a profit of $5.8 billion for 2016’s first quarter – a 12% increase over last year’s first quarter. Samsung even managed to exceed analysts’ predictions, which is a great sign for the future of Samsung’s mobile department.

Samsung’s turnaround couldn’t have come at a better time, with the company reporting an operating profit of $3.89 trillion – nearly a 42% profit from 2015’s first quarter, and the highest for Samsung since 2014.

Although the manufacturer doesn’t release specific figures, it’s estimated that Samsung shipped 9.5 million Galaxy S7’s this quarter, surpassing the expectations of many financial speculators. Samsung’s chip division is also reportedly in the black, with a net profit of $2.63 trillion won, despite being a 10% decline from 2015’s first-quarter chip sales.

Samsung is predicting healthy sales for the second quarter, as well, due to the new Samsung Galaxy S7 and S7 Edge.

Considering that most smartphone manufacturers have reported a decline in sales, this quarter, these figures suggest that Samsung is stealing back the hearts, minds, and imaginations of savvy smartphone lovers.

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iPhone Sales Decline For The First Time Ever

iPhone 5 repairsAccording to Gartner, Apple experienced its first decline in iPhone sales since their initial release, during the final quarter of 2015.

Is the beginning of the end for the mobile media juggernaut?

Not hardly.

Apple still did a healthy business, despite being 4.4% lower than the previous year, selling 71.5 million mobile phones, instead of 74.8.

Huawei and Samsung were the only two mobile phone manufacturers to report an improvement in sales last year.

When taken together, smartphone sales representatives from around the globe managed to sell 403 million handsets in the fourth quarter of 2015 – 9.7% increase the fourth quarter of 2014, but still being the slowest growth percentage since smartphones hit the market.

Samsung is leading the pack, with 20.7% of the market share, compared to 19.9% in 2014. Apple, coming in at Number Two, fell a couple of points, from 20.4% in 2014 to 17.7% in 2015.

Huawei came it at Number Three in the mobile market, ascending to 8% market share, from 5.7% in 2014. Lenovo and China’s Xiaomi were close behind, securing 5% and 4.5% of mobile handset sales, respectively.

Overall, mobile markets sold 1.4 billion units in 2015, up 14.4% from 2014.

Gartner’s Research Director Anshul Gupta speculated on the cause of these trends, claiming “Low-cost smartphones in emerging markets, and strong demand for premium smartphones, continued to be the driving factors. An aggressive pricing from local and Chinese brands in the midrange and entry-level segments of emerging markets led to consumers upgrading more quickly to affordable smartphones.”

Also, according to Gupta, many of the emerging Asian/Pacific market are anticipated to upgrade their devices quickly, to the same brand they already own.

It’s interesting to speculate on the reasons for the falling figures. While it’s tempting to blame a faltering economy, or the public’s attention being diverted to some new fad, the fact of the matter is, many/most people don’t need a brand new phone every single year, no matter how powerful or trending it might be.

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