Future of Samsung

Good evening my readers!

I have had so busy day to day that I’m so glad I can finally just sit down and take a breath. But first (before I totally relax and go to sleep…) I think I might tell you something that I thought was interesting instead. I have read along this week a few articles in websites called The Economist and DailyFinance. Those articles were about smartphones, particularly Samsung and Apple.

Even though Samsung is now the world’s largest maker of smartphones it has made much less profit this year compared to last year.  Last year (2013) Samsung’s profit was 10,2 trillion won when it’s now only 4 trillion. The article “Saved by chips” in The Economist website has a great point of view that considers if Samsung will be “a new Nokia”. What if Samsung will have rapid declines just like Nokia had few years ago? How this would affect to smartphones market? I think it has a major impact.

There are new upcoming companies which are going to change smartphones market place, probably with cheaper prices or with new application. Those companies are the ones that are going to pass Samsung away from smartphone business. Samsung has a chance to rise if they are going to create something innovative in the next few years.  Samsung’s major risk now is that those companies will take its place on being worlds’ largest smartphone maker and that they will drop out of smartphone business entirely.

gs5-angle-640

But there is more to it. I was wondering what would happen to Apple and its iPhone if Samsung was gone? Apple is considered wealthy peoples brand because their prices are remarkably more expensive when compared to other companies’ products.  And most of all Apple has always kept the hype of their products which have made it possible to keep their prices up. DailyFinance had this article about Apples cool “Has Apple Lost Its ‘Cool’? Some Consumers Say, ‘Yes’”. It was telling about a survey that was made to compare Apple to other devices such as Android but most of all the survey was showing how Apples iPhone has lost its coolness over the years. The consumers said in the survey that Apple has “copied” some of its new features almost entirely from Android phones. For example, Apples newest phone iPhone 6 and iPhone 6 plus have bigger screens that have never before been in iPhones but instead in Androids there have been big screen for years, for example in Samsung’s S collection. And the negative view from the survey in this point was that Apple was making fun of Samsung’s big screen and now they have it in their design too.

iphone_6_iphone_6_plus1

Even though the survey exposed some doubts about iPhones coolness they have made such a great profit already with their new smartphone model iPhone 6. Apple made a record by selling 4 million first-day-pre-orders which is about twice as much as two years ago with iPhone 5 model. According to article “Pre-Orders for New iPhones Set an Apple Record” in DailyFinance Apple will be selling as many iPhone 6 and 6 plus model as they manage produce them. So I guess after all their popularity isn’t going to have a straight fall anywhere soon.

If Samsung would disappear I guess at some point there would be a new “Samsung”. I mean by saying new “Samsung” that there would become a new company that will succeed the similar of way that Samsung has succeeded over the years.  It’s almost a fact that brands fade and consumers will be interested in new brands. So I guess it will be seen if this ever happen to Apple too… Or will Apple survive no matter what?

I guess you have to think about that yourselves because I’m ready to go sleep. Hope you all had a great and productive day such as I have had. Good night everyone!

 

Sources

http://www.economist.com/news/business-and-finance/21623171-saved-chips

http://www.dailyfinance.com/2014/09/17/reviewers-apple-iphone6-bigger-better/

http://www.dailyfinance.com/2014/09/15/iphone6-orders-set-apple-record/

http://www.dailyfinance.com/2014/09/19/apple-no-longer-cool-iphone6/

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One Response to Future of Samsung

  1. shattinen says:

    Interesting topic! Good night to you too! 🙂

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