Local mobile phone high jump foreign brand diving

Samsung Electronics announced yesterday that its operating profit in the second quarter of this year was likely to fall 24.5% to 7.2 trillion won (about 7.12 billion U.S. dollars) as the smartphone business slowed.

It is reported that the operating profit data once realized, will be Samsung Electronics nearly two years to obtain the lowest quarterly profit. The industry said that in the context of a sharp decline in mobile subsidy from global operators, including Apple, Samsung and other companies will be greatly affected by the performance, at the same time, China's Huawei, Lenovo, cool faction and millet companies, and even home appliances manufacturers mobile phone business, the big increase in Apple, Samsung two giants caused the impact.

Slipped for three consecutive quarters

It is reported that the previous 38 analysts gave Samsung second-quarter operating profit on average expected to be 8.3 trillion won, and yesterday Samsung Electronics itself estimated 7.2 trillion won the performance is far lower than expected, some media said that the number of Samsung Electronics since the announcement in the second quarter of 2012 profit of 6.5 trillion won the lowest number. In a statement, Samsung Electronics said it would issue formal quarterly results by the end of July, and in another statement, Samsung said the won was strong and the overall growth rate of the smartphone market slowed down in the second quarter, affecting profits. Samsung's marketing costs have also risen in order to reduce inventories. But the industry said that, while profits were down, Strategy Analytics, a market research agency, reported that Samsung was still the first in the global smartphone market in the first quarter, though market share fell to 31.2% from 32.4% last year.

The reporter looked at the data found that from the second half of 2012 beginning, the three major operators gradually lowered high-end mobile phone subsidies, from the iphone, Samsung note, such as high-end mobile phone carrier packages can be seen, subsidies are significantly less than before.

Industry insiders said in the fierce competition in 3G, the three operators in order to expand the number, and to improve profit margins, have to reduce the subsidy to high-end handsets, and also expand on the thousand-yuan smartphone subsidy, which is the operator to pull 3G New user volume has greatly promoted, which led to the Apple iphone, Sales of high-end handsets such as Samsung have stagnated, while local brands have taken the opportunity to expand sales. For the first time in the fourth quarter of 2013, Samsung saw a decline in operating profits from publicly available data, with three consecutive quarters of operating profit declines in the first quarter of this year and in the second quarter.

Reason one:

Operator subsidies fall sharply

In the decline in Samsung's operating profits, some insiders say the decline in subsidies from global operators is one of the main reasons for the decline in the performance of high-end handset makers, including Apple and Samsung. In 2014, the three major operators planned to cut more than $10 billion trillion in mobile phone subsidies, the news said. There is analysis that at present, the Chinese market has 50% of the mobile phone through subsidies to sell out, so the operator subsidy will be a sharp decline in the sales of rival machine manufacturers, including Apple, Samsung and other high-end mobile phones are more affected, because the current operators need to subsidize around the 4G smartphone to pull the 4G number.

Reason two:

The emergence of Chinese local brands

From previous data, mobile phone business for Samsung Electronics contributed more than 50% of the profits, so the mobile phone business is affected, resulting in its overall performance is affected. In addition to the decline in carrier subsidies, including Huawei, Lenovo, cool and millet and other local mobile phone brands in recent years, the rise of Samsung and Apple's shipments have brought a huge impact. Recently published data show that millet in the first half of the total sales of mobile phone 26.11 million units, an increase of 271%. and the 4G mobile phone market in May this year, the first reversal of the local brand cooler for the first time over Samsung, while Apple fell to third place, Samsung ranked second. Even the home appliance manufacturers Tcl announced the interim results forecast, the mobile phone is also its performance "hero", the first half of this year, TCL group smartphone sales increased by 219.9% Year-on-year. Industry insiders say China is now the world's largest mobile phone consumer market, how its performance will greatly affect the ranking of manufacturers in the global market, and IDC data show that the first quarter of this year, the world's top five of mobile phone shipments, two are Chinese brands, of which Huawei ranked third, Lenovo ranked fourth.