Tag: MArket standing

Samsung Electronics to Freeze Salaries of its Employees

It doesn’t matter how aggressively Samsung retorts to challenge reports by analysis firms reporting it losing its stronghold in the market; reality cannot be concealed for long. Unfortunately, the company is currently in hot waters and is suffering a financial setback.

As per a developing report by Reuters, Samsung Electronics will freeze the salaries of their employees this year, as per a statement by the spokeswoman of Samsung. It is the first time the South Korean organisation has taken such a step since 2009. The company representative didn’t throw light on what made the company take such a drastic step.

Samsung is undergoing a rough patch as its profits declined substantially in 2014. It was the first time in three years that its earnings took a downward turn. Well, we have high hopes from the upcoming Galaxy S6 to be launched at the Mobile World Conference. If that turns out to be a hit, it might help Samsung regain its position as one of the top smartphone manufacturers in the world.

February 26, 2015
Samsung Hits Back at Canalys Report, Says it is Still on Top

Today began with a news that could have been the cause of jubilation at Micromax’s office but would bring gloom to Samsung’s. Research firm Canalys had reported that Samsung was pushed off from the top spot by Micromax in the fourth quarter of 2014. But Samsung has now hit back at the report quoting data from market research organisation Gfk group.

Samsung has said that according to the Gfk data, its volume market share in the October-December 2014 quarter was 34.3% whereas the value market share was 35.8%.

[quote text_size=”small” author=”Asim Warsi” author_title=”Vice President, Marketing, Mobile business, Samsung India Electronics Pvt. Ltd.”]

In the entire year 2014, we continued to lead the market with innovative and exciting offerings. Our volume market share in the smartphone market in the year was 35.7%, which is more than double than that of the next player, while our value share was 40.2%, which is more than four times the next player. The GfK data is based on actual retail sales in 50,000-plus population cities.

[/quote]

But all of this doesn’t depart from the fact that the company has been losing ground to brands that are offering a lot more features to the consumers. Samsung has to find a silver bullet to return back to the prominent spot it used to at during the start of the smartphone race.

February 4, 2015
Micromax Fast Capturing Samsung’s Rapidly Losing Ground

A few months back, Samsung got its first jolt in rating when Xiaomi kicked it from the top of the podium to second spot in China. A few days later, Samsung was overtaken in the Indian market by the homeboy Micromax in Q2 2014. Samsung denied the news and said that it was still at the top. Well, seems like Samsung’s woes have not finished yet.

Market research firm IDC is reporting a drastic fall in Samsung’s market share. At the same time, Micromax is showing positive gains. While Samsung slipped from 29% market share to 24%, Micromax gained a healthy lead of 2 percent and went from 18% to 20%.

Samsung’s sales have been falling over the last couple of years. The culprit can easily be found. The electronic giant has not brought any exceptional device in a while, and even the innovative Note 4 is out of the reach of the average consumers. Samsung is also facing stiff competition from Chinese and Indian brands who are fast adopting high specs, low price formula.

Though Micromax too doesn’t have any exceptional device in its portfolio, its Indian brand appeal comes to its rescue. The company has been berated for its unsavory after sales service. Recently, the company has hinted at making products based on CyanogenMod that would take care of most of its headaches. The custom ROM is known globally for its stock android experience with amazing customisability features and regular updates. The CyanogenMod-based devices will be released under the brand name ‘Yu’ and are expected to be launched next month. If Micromax plays its cards right, it can literally go places with the Yu. The advice for Samsung has been around for a while, it is to go back to the drawing board and start from scratch, and finally the company is paying heed to it. We just have to wait another quarter to know the further fate of these companies.

November 28, 2014