Friday, March 29, 2019

Samsung Galaxy Smartphones Decreased Demand

Samsung wandf unhopefuler Smart retrieves Decreased DemandSamsung Electronics is one of the Koreas crown electronics keep company which was founded in 1938. It has grown from small business to be one of top leading electronics and Technology in the world. It makes many kinds of consumer devices, including DVD players, digital TVs, and digital still cameras computers, color monitors, liquid crystal display panels, and printers semiconductors such as DRAMs, static RAMs, flashbulb memory, and display drivers and communications devices ranging from wireless handsets and sweetphones to networking gear. However, they ar in the main popular for their Smartphones ( extragalactic nebula), which is considered as one of its mains products. Samsung wandflower includes categories such as Galaxy Note series, Galaxy Tab Series and Galaxy S series.Samsung from several courses argon relaying mostly on its smartphones sale to maximizing its pelf, as other products sales argon showing deter ioration such examples include home appliances and LCD TV. Unfortunately, currently Samsung are struggling to sustain their sales and utility from Galaxy smartphones. Samsung increases deem been on declining inquire since 2013. Despite the company creation the greatest in the world when it comes to extinctput signal of smart phones, the pressure that it continues to foregather from the food market can no longer be denied.In this year second quarter Samsung Galaxy smartphones entertain shown even huge profit and demand drop for its smartphones. As you can see below the chart clearly shows the Samsung profit render been going down from year 2013 and was smite in the second quarter of this year.http//www.statista.com/statistics/237093/samsungs-operating-profit-quarterly-figures/There are various reasons for this downfall, Samsung has eternally used a huge marketing compute. Nevertheless, in the last quarter, its budget was far larger in ways that were not favored by the company. The company has been compelled to use huge amounts of money on promoting the older and lower-end gadgets that use up been congesting its warehouses because of weak demand . This fall in trade, together with the extra money spent on publicity has catalyzed the plastereds dwindling fortunes. rattling having, fewer shipments of high end phones, has also resulted in having and clotheing to market the old models has helped demand change magnitude for Samsungs. More importantly the market contr oersy that Samsung is facing from its main rival orchard apple tree IPhone smartphones and other competitors has also contributed in weakening the demand.Decline in demand also can be attributed to their exorbitant price of smart phones. Because the Price elasticity of demand for Samsung is high, impr over prices has result in less demand for its smartphones. Also, Samsungs competitors, which are mostly based in china, are producing phones that have features that are essentially co nvertible to those of Samsung. They are however, offering these phones at prices that are much cheaper and afford suit equal. This has, in that respectfore, beat the train of purchasing Samsung phones that are unnecessarily expensive and shifted concourse demand from its smartphones to their rivals cheaper smartphones.The decline of the sale and the demand of smart phones is caused by inability of Samsung to be much creative. For example, when it comes to the features that are contained in their many smart phones. Their S series smart phones are the typical. The cheaper ones have fewer features though. The difference in the ones that are more(prenominal) expensive is their size. Since the release of the S3, the subsequent ones S4 and the recently released S5 are similar in several ways. Consumers are starting to feel that these S phones are overrated and over advertised, which coincidentally has been said of the reasons Samsung is investing a lot in over advertising.This strate gy is geared towards trying to get their products out of the warehouses and into the market to be purchased by the consumers. Unfortunately, this have resulted not only in having a cast out impact on the sales, its also reduced their profit delimitation due to overspending and less demand.As an economic consultant observing Samsung Galaxy smartphone declining demand, I will try to recommend solutions to fix this economic job by analyzing the root reasons.Searching and analyzing the market it was found out that there was a lot of factors that influenced Samsung smartphone sales which made it gone down in the third quarter of the year. First of all consumer taste and preference for pause improved applied science products. The fact of the innovative technology, and the willing to adapt untested features and devises that made Samsung to be the second choice of its customers.In addition to that, the unvoiced rival competition and all consumers being aware that there are other sub stitute smartphones that have similar even better featured, such as the IPhone, which gives negative impact on demand. For example, when Apple IPhone 6 has launched in the market, it has made major shift in demand from Galaxy to IPhone smartphones.How Samsungs Demand could be increasedIn order for Samsung to recover from its decreasing demand, it should do several things such as offering prices that are hawkish in the international market. Whereas the number of clients obtaining smartphones is still elevation, it is growing harder for the company to bump new market for its high-end devices. This therefore suggests that the firm will have to play down its prices in order to sell these gadgets. However, this will still reduce its profit margins.Samsung should focus its attention on shifting its product mix towards low and middle iced handsets. Under the prevailing situations, the company will have to turn back and observe how it will uphold its profitability in the future. Additi onally, Samsung needs to rollout new products that will stave off gains made by Apple on the larger-screen iPhones especialty the Galaxy developer has dominated (Sakr, 2014).According to the firm, the rollout of fresh mobile models will track new technology that will assist to scale down production cost and comparatively that will assist to give cheaper price products. Moreover, the firm should utilize an assessment on the prices of the smartphones and come up with figures at which demand will rise for their smartphones (Sakr, 2014). By offering incentives such as headsets and phone covers, the company will be able to improve its sales. Finally, Samsung can increase its demand by offering competitive prices and embrace new technology that will assist to scale down production costs.Alternatively, if Samsung was not able to compete in market against it rival IPhone and will give up to invest any more in Smartphone. We highly recommend that it should invest more in developing and imp rove its tablets as it score to have a higher demand than the smart phones.Obviously by improving Samsung Smartphones quality and increasing its decreased demand, will help in raising the reduced turnover for its third quarter. Samsung makes about two third of its profit from its smartphones sales. Which means any drop in smartphones sales will have a huge impact on the companys turnover. If Samsung was able cope with shifting market preferences that will help them stand out among competitors like Apple.Samsung deals mainly with Technology which is one of spendthrift moving and update things and to survive in the market, Samsung should be always ready to offer fast new technology features in their Smartphones. It mainly include keeping an spunk on it main competitor Apple IPhone and try to offer features that are unique or at least which are offered by Apple IPhone to be able to compete in the market. This idea has been successful with IPhone when they have took over Samsungs adva ntage of having big size screens which was one of reasons of people smartphone shifting demand to Samsung. IPhone has been successful to offer that feature in its IPhone 6 Plus by which it attacked Samsungs main unique feature over IPhone.http//bits.blogs.nytimes.com/2014/04/18/in-the-battle-for-best-smartphone-apple-still-beats-samsung/?_php=true_type=blogs_r=0http//www.mobileworldlive.com/slowing-demand-reported-for-samsungs-galaxy-s4http//recode.net/2014/07/07/samsung-says-second-quarter-tablet-sales-sluggish-as-smartphone-growth-slowed/http//maps.yankeegroup.com/ygapp/content/10fed569fe2f4661ba2b7f2d01df77e6/50/DAILYINSIGHT/0

No comments:

Post a Comment