Samsung or will be next Nokia

The masses today are filled with the evil taste of evil. No longer care about a celebrity, star, or how a business is from scratch, fame, overnight rich, more concerned about how they fell from heaven into the abyss. So that they can laugh at the sentence: "Know so, why try." "Samsung now faces such an embarrassing situation. After years of deep pockets, the dismal earnings highlights its weakness, and many people are waiting to see its jokes.

In fact, Samsung's fall is not sudden but has deep roots. The so-called most powerful place is the weakest link, Samsung eventually defeated in the success of their peak in the mobile business. Today's Samsung is like a hot cat on a hot, nasty, but there is always no appropriate countermeasures-or in the absence of the signs of the time to find a way. For Samsung, the worst days have yet to come, and the difficulties may have just surfaced.

Samsung at a loss in earnings report

In terms of earnings, Samsung crashed like a meteor, and over time, it's getting faster. Samsung's 2014-year operating profit was 8.4 trillion won (about 8 billion US dollars), down 4.3% per cent year-on-year. Only three months later, Samsung's two-quarter revenue was 52 trillion won (51.5 billion US dollars), down about 10% per cent, and operating profit of 7.2 trillion won (7.1 billion), down 24.5% per cent year-on-year. A recent three-quarter initial earnings show that revenue was only 47 trillion won (about 44.2 billion US dollars), down 20% per cent year-on-year, and operating profit was down 59.7%, just 4.1 trillion won (about 3.8 billion dollars).

Samsung's earnings have been on the decline for four consecutive quarters, and the rate of decline is staggering. The decline in operating profits was almost the biggest in nearly five years. But in the face of plummeting revenues and profits, Samsung has given no strong response. Even if you make some minor moves, you don't fundamentally solve any problems. Four quarters, that is, a year's time, Samsung is falling, for such a giant, almost unimaginable. More seriously, the downward trend seems to have shown no sign of abating or stopping for the rest of the time.

Apple, Chinese handset makers double crackdown on Samsung mobile business worrying

In the final analysis, Samsung's earnings slump is that the most powerful mobile business is facing unprecedented difficulties. It is understood that last year mobile business unit for Samsung contributed 68% of operating profits. As of the two quarter of this year, only Samsung contributed 59% of the operating profit, down nearly 10%. The mobile business is the undisputed pillar of Samsung, but it is the slide that has put Samsung on the brink of danger. The downturn in the mobile business not only let Samsung share price plummeted, and even affect consumers to its brand value affirmation, and then form a snowball effect, once the king of Nokia's collapse, is the best example.

And the big impact on the mobile business, is from Apple and mainland China handset manufacturers in high-end and low-end of the double attack and suppression. Samsung has been able to be favored by many users in the first two years, and the big-screen smartphone is its most powerful weapon. With the rise of mobile phone manufacturers in mainland China, millet, Huawei, Lenovo, ZTE and two or three-line manufacturers big screen, Gao Pi, low-cost strategy, Samsung smart big screen mobile phone sales have been seriously impacted. Especially in the last year, the performance is particularly serious. Similarly, the same system, the same configuration, Samsung only to brand value added to sell sky-high, more and more the pursuit of cost-effective users rejected.

Although Samsung is still the first to ship in mainland China, the gap with the manufacturers behind them has been slim. Samsung is already a good middle and high-end market share has been eaten away, China's most potential market for Samsung left less space. Not only that, more and more Chinese mobile phone manufacturers began to go abroad, overseas, in the global market to show off, marketing their own low-cost high-quality Intelligent Mobile terminals, are giving Samsung great pressure. Foreign users not only know that Shandong Lanxiang excavator technology Strong, but also know that China's smartphone has been able to with a number of international giants to the wrist.

In addition, a lot of fruit powder is reluctant to buy Samsung mobile phones, because Apple has not yet launched a big screen iphone. Of course, more users are struggling to wait. In the Apple big screen mobile phone iphone 6/plus launched, will immediately detonate the user purchase desire, its listing three days to sell 10 million units! This will undoubtedly take away Samsung's many potential users. And Samsung although the Apple before the release note 4/edge, but limited to hasty horse, unprepared, unexpectedly not even the iphone 6/plus listing fast. Even note 4 also broke the serious process problems, but also let many users deterred.

So predictably, the pressure on Samsung from Apple and mainland Chinese handset makers will grow. Samsung in high school low-end products have met a strong challenge, doomed to be impossible. And two not flattering Samsung, even if the annual cost of tens of billions of dollars in marketing costs, if there is no revolutionary product technology highlights, may not be able to restore the user's favor? And it will not be easy for Samsung to make amends after the mobile business has been hit hard.

Find another way? Samsung re-build Chip factory

For Samsung, the mobile business is its backyards and must be done. But if there is no way to recover, Samsung is ready to retreat, in other areas of savings. Samsung's chip business, for example, is still operating well. Analysts predict that by the end of this year, the chip business will generate more than 50% of the profit (last year 20%), which will surpass the mobile business as Samsung's most important pillar. To this end, Samsung will invest 15.6 trillion won (about 15 billion U.S. dollars) in South Korea to build a semiconductor factory. The new plant is located in Seoul, south of Korea's central city, and the factory building will start in the first half of next year and be completed and put into production in the second half of 2017.

But is the chip business really able to save Samsung from fire and fire? You know, Apple realized that it was not feasible to give all the chips to Samsung, so it has already given some of its business to TSMC. In such a situation, the blind expansion of the chip factory really fit? In addition, Samsung's own chip and Qualcomm, MediaTek, compared to a number of gaps, and can not dominate the market. Individuals from the long-term view of 4-5 years will not affect the overall industry.

Of course, Samsung does not put eggs in a basket, but also into the smart home platform, wearable smart devices and other areas. It's just that these are alternative defensive schemes that are still less powerful than mobile smart terminals. But as the mobile business continues to weaken, if one day Samsung no longer launched a smartphone also don't be surprised, after all, it is possible that all IBM do not sell "Little red dot" notebook, this world there is nothing possible!

The worst days yet to come Samsung or will be next to Nokia

To sum up, the mobile business slump, revenue/profit double decline ... Samsung seems to have been pushed to the corner, but the worst is yet to come. Today, Samsung's fall is almost all about, the mobile business aside, it also withdrew from the European notebook market! But more crucially, Samsung is not propping up the core of its vast business empire now that it faces a new recalcitrant. Whether it's smartphones, notebooks, or wearable devices, today's Samsung has almost no technology or products that are of great revolutionary significance. It's more like a giant generation factory, just putting Android and windows into a bunch of hardware. Samsung thinks the old rival Apple, although the hardware and design faced with the same problems as Samsung, but it also has its own soul--ios, OS X, App Store ...

To know that no soul, no core competitiveness of enterprises are doomed to not always excelled the market. The plight of Samsung today is in fact a foreshadowing of years ago. Samsung's situation may be getting worse over the next few days. Become the second HTC, BlackBerry or Nokia? Don't laugh, it's not impossible!