All is not Nothing is going well for Samsung as the year progresses towards it’s fourth quarter. It’s revenue generating mainstay – the Galaxy range of smartphones — despite an earlier than Apple debut — has failed to break-even with its production costs. The latest in line of the Galaxy range has added to the company’s whopping loss of $44 billion, which has been nosediving since April this year.
Thanks to this, the Korean smartphone giant’s shares have seen red, with a percentage decline of 8.1 percent in August, reports Bloomberg. If you have to analyse this loss then it was back in 1983 — Samusng had suffered a similar fate. Samsung’s loss has meant that it’s arch-nemesis Apple, takes over the crown.
The company’s losses are so drastic that it has also been knocked off the charts by Chinese upstart smartphone makers. In the month of August alone, the company has lost over $12 billion facing tough competition from budget smartphone makers.
Samsung had recently launched its extended side screen smartphones the S6 Edge and Edge Plus. But as it appears, they have played little part in pushing Samsung’s revenue towards a positive margin. Samsung may have hurried it’s launch in order to gain a significant market share before the launch of Apple’s new line of iPhone’s to be released earlier next month. But the strategy has meant no good for Samsung.
Market watchers also claim that the current smartphone market isn’t showing a positive trend either and the impact is not solely Samsung limited.
But with a loss of $44 billion, Samsung is the one that has taken the fall head-on with a 3 percent slump in its market share for the second quarter of this year. The country that was once it’s highest revenue generator has been taken over by homegrown upstarts like Xiaomi, as Samsung looks to reclaim the Chinese smartphone market, which is the largest in the world.
Xiaomi and Huawei strategy to cater to the budget smartphone market has paid off really well. But Samsung’s higher end releases including its latest offering the Galaxy Note 5 have failed to generate the response that the company eyed for.