Samsung's fall: The worst days have not arrived yet

Source: Internet
Author: User

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Nowadays, the masses are full of evil tastes. They no longer care about how a celebrity, star, or enterprise becomes famous and becomes rich overnight. They are more concerned about how they fall into the abyss from heaven. In this way, they can laugh at it: "I have known this, why bother ." Today, Samsung is facing such an embarrassing situation. After years of being wealthy, the poor financial report highlighted its weakness and made many people wait to see its jokes.

In fact, Samsung's fall is not a sudden event, but a deep root. The most powerful part is the weakest link. Samsung eventually fails to achieve its own mobile business. Today, Samsung is like an ant in a hot pot, but there is no proper countermeasure in a rush-or else we should find a way when there is a decline. For Samsung, the worst days have not yet arrived, and difficulties may have just surfaced.

Samsung was overwhelmed by financial report

From the financial report, Samsung's fall speed is just like a meteor, and as time goes by, it is getting faster and faster. In the first quarter of 2014, Samsung's operating profit was 8.4 trillion billion won (about 8 billion US dollars), down 4.3% year on year. Just three months later, Samsung's revenue in the second quarter was 52 trillion won ($51.5 billion), down about 10% year on year. Its operating profit was 7.2 trillion won ($7.1 billion ), down 24.5% year on year! The three-quarter initial financial report released recently showed that revenue was only 47 trillion million yuan (about 44.2 billion US dollars), down 20% year-on-year. Operating profit declined by 59.7% year-on-year, only 4.1 trillion won (about 3.8 billion US dollars ).

Samsung's financial reports have declined for four consecutive quarters, and the speed of the decline is staggering. Among them, the decline in operating profit is almost the biggest for Samsung in the past five years. However, in the face of sharp declines in revenue and profits, Samsung did not give a strong response. Even if we make some minor actions, we have not fundamentally solved any problems. In four quarters, that is, one year, Samsung was in a fall state, which was almost unimaginable for such a giant. More seriously, the decline does not seem to show any signs of weakening or stopping in the next period.

Apple and Chinese mobile phone manufacturers are cracking down on Samsung's mobile business

In the final analysis, what is behind Samsung's financial report decline is that the original strongest mobile business is facing unprecedented difficulties. It is understood that last year, the Mobile Business Department contributed 68% of the operating profit to Samsung. As of the second quarter of this year, only Samsung contributed 59% of its operating profit, down nearly 10 percentage points. The mobile business is the undisputed pillar of Samsung, but it is the decline that puts Samsung on the verge of danger. The sluggish mobile business not only caused Samsung's share price to plummet, but even affected consumers' recognition of its brand value, thereby forming a snowball effect. The collapse of Nokia, the old king, was the best instance.

What has a huge impact on mobile businesses is the dual-click and suppression of mobile phone manufacturers in Apple and mainland China at both the high-end and low-end. Samsung has been favored by many users in the past two years. The big screen smartphone is its most powerful weapon. With the rise of mobile phone manufacturers in mainland China, Samsung's sales of Smart screen mobile phones have been severely impacted after the big screen, high-configuration, and low-price strategies of Xiaomi, Huawei, Lenovo, ZTE, and third-line manufacturers have been launched. Especially in the past year, the performance has been particularly serious. In the same system and configuration, Samsung sold the product at a high price only based on the added value of the brand, and is increasingly excluded from users pursuing cost-effectiveness.

Although Samsung is still the top seller in the Chinese mainland market, the gap between Samsung and the following vendors is very small. Samsung's original high-end market share has also been eroded, and China's most promising market leaves less and less space for Samsung. In addition, more and more mobile phone manufacturers in mainland China are stepping abroad to show off and sell their own low-price and high-quality smart mobile terminals in the global market, which are putting great pressure on Samsung. Foreign users not only know Shandong lanxiang's excavator technology is strong, but also know that Chinese smart phones can be used with numerous international giants.

In addition, many fruit powders have no choice but to purchase SamSung mobile phones because Apple hasn't launched a big screen iPhone. Of course, more users are waiting. After the launch of the iPhone 6/Plus, an apple big screen mobile phone will immediately trigger the user's desire to buy. It will sell 10 million devices in three days! This will undoubtedly take away a large number of potential users of Samsung. In addition, Samsung released note 4/edge before Apple, but limited to the rush to the horse, lack of preparation, even not the iPhone 6/plus market fast. Note 4 has even encountered serious technical problems, which also discouraged many users.

Therefore, it is foreseeable that Apple and Chinese mobile phone manufacturers will put more and more pressure on Samsung. Samsung has encountered strong challenges in its high-end, middle-end, and low-end products. However, even if Samsung, which is two bits, spends tens of billions of dollars a year on marketing expenses, it may not be able to win the favor of users if there are no revolutionary product or technical highlights? Samsung wants to make up for the loss of its mobile business.

Another way? Samsung re-built the chip factory

For Samsung, the mobile business is its face and must be done. However, if there is no way to recover it, Samsung is ready to leave the road and continue to work hard in other fields. For example, Samsung's chip business is still operating well. Analysts predict that by the end of this year, the chip business will generate more than 50% of the profits (20% last year), which will surpass the mobile business and become Samsung's most important pillar. To this end, Samsung will invest $15.6 trillion (about $15 billion) in building a semiconductor plant in South Korea. The new plant is located in pingze city, Gyeonggi do, south of Seoul, South Korea. Construction will start in the first half of next year and is planned to be completed and put into operation in the second half of 2017.

But can the chip business really save Samsung from the fire? You know, Apple realizes that it is not feasible to hand over all chips to Samsung, so it has already handed over some services to TSMC. In this situation, is blind expansion of the chip factory really suitable? In addition, there are still some gaps between Samsung's chips and Qualcomm and mediainfo, which cannot be dominant in the market. For the long term ~ Within five years, the overall situation of the industry will not be affected.

Of course, Samsung did not put eggs in one basket, but also moved into the Smart Home Platform, wearable smart devices and other fields. However, these solutions can only be called alternative defensive solutions. Currently, their influence is not as strong as that of mobile smart terminals. However, as mobile services continue to weaken, don't be surprised if Samsung no longer launches smartphones one day. After all, everything is possible-IBM does not sell "little red dot" laptops, what else is impossible in this world!

The worst days have not come to Samsung or will be the next HTC, BlackBerry, or Nokia

To sum up, the mobile business is sluggish, and revenue/profit is declining ...... Samsung seems to have been pushed to the corner, but the worst days have not yet arrived. Today, Samsung's fall is almost all-around, and its mobile business has been withdrawn from the European notebook market! But what's more important is that Samsung is not yet able to support the core power of its own huge business empire in the face of the new and old handsome exchanges. Samsung has almost no revolutionary technologies or products, whether it's smartphones, laptops, wearable devices, or other popular products. It is more like a large foundry, but it only adds Android and Windows systems into a pile of hardware. On the other hand, Samsung's self-proclaimed Apple faces the same problems as Samsung in terms of hardware and design, but it also has its own soul-Ios, OS X, app store ......

You must know that companies without a soul and core competitiveness are doomed to never renew the marketplace. In fact, Samsung's current predicament has already been buried as early as a few years ago. In the next period, Samsung may become increasingly vulnerable. Become the second HTC, BlackBerry, or Nokia? Don't laugh, it's not impossible! (New technology discovery: Kang standing/Wen)

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Samsung's fall: The worst days have not arrived yet

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