Samsung dawned China market mobile phone low price change sales is the king

Samsung's efforts to keep a dominant position in the fast-changing smartphone market will depend on winning a return to users such as He Wenzhong (he wenzong), the Wall Street Journal website reported October 28. He Wenzhong last year eliminated the Galaxy S3 phone, one of Samsung's most successful products, and swapped for a millet phone. A few months ago, Millet overtook Samsung to become China's first intelligent expert machine manufacturer. He Wenzhong said that the millet mobile phone provides better software and services, and the price is only the equivalent of Samsung mobile phone half, in my opinion, their quality is no different, but a mobile phone price is 2000 yuan, another price is as high as 3500 yuan, why I choose Samsung products. In China and around the world, many people are beginning to feel the same way. Samsung is no longer the mobile phone market in India, and market research firms that track smartphone sales say Samsung could also lose its dominance in the Thai and Philippine markets. Although Samsung is still the world's number one maker of smart machines, market share has been losing in recent quarters. Samsung is sending executives to China's division to hire consulting firms to help identify and solve problems in the Chinese market, according to people familiar with the matter. The Chinese market has contributed 18% of revenues to Samsung, more than half of the mobile phone business sector. Samsung has cut its existing handset product prices by up to 20% per cent, considering new marketing strategies in the Chinese market and plans to introduce lower-priced new products for emerging markets. The moves are part of Samsung's efforts to boost handset business performance. The handset business has contributed about 60% of its operating profit to Samsung. Samsung, which will release its earnings in Thursday, is widely expected to reduce its operating profit by 60% in the third quarter from a year earlier, following a 20% per cent drop in the second quarter, Samsung admits. The main reason is the increasingly fierce competition in the Chinese market. Analysts expect Samsung's mobile-phone business to fall from 19.8% in the first quarter to 8.1% in the third quarter, the lowest level since early 2000. Canalys, a market research firm, showed that in the past 2.5 after leading the smartphone market in China, Samsung ceded the throne of China's largest handset maker to millet in the second quarter, tied to Lenovo and cool. Samsung's shares have fallen 26% since the beginning of June, falling to a 3-year low last week. Samsung has cut bonuses for hundreds of executives in its mobile phone business, according to sources. To streamline business processes, Samsung has placed a number of major U.S. business units under an executive leadership. That could herald a concentration of power, similar to Samsung's headquarters. To reduce manufacturing costs, Samsung invested 2 billion dollars (about 12.3 billion yuan) last year in a new mobile phone factory in Vietnam, with approval from the Vietnamese government in July to build a factory to produce screens for smartphones and tablet computers. A Samsung spokeswoman declined to comment on the company strategy or personal mobility issues. Samsung has become the world's largest smartphone maker by offering a full range of products, from low-end to high-end. Samsung makes its own displayscreens, memory chips and batteries, and invest billions of of dollars a year in marketing products. For years, this strategy has worked well in China. In 1992, Samsung entered the Chinese market. In the 1990 's, Samsung began building huge television and mobile-phone sales networks, which have a much bigger lead than Apple in launching high-end smartphones. With most Chinese consumers buying handsets from mobile-phone stores or home appliance retail outlets, rather than carriers, a huge sales network has made the Samsung market cover all markets, from villages to big cities. However, recently many Chinese consumers began to buy mobile phones, including millet, many competitors mainly through the network channels to sell products, reducing the cost of sales. Millet sells handsets at near-cost prices, hoping to make money through software and services, a strategy that makes its handsets more competitive in price than Samsung. Samsung, like most Samsung handsets, uses Google's Android operating system for its mobile phone products, but is better at pre-installed software that generates revenue and promotes its own app stores. Samsung itself admits it's taking a slow half. Samsung has been taking expensive routes-even low-end products-leading to a lot of inventory. Samsung sent top marketing and finance executives to take the pulse of China's mobile phone business and hired consulting experts from McKinsey and Boston Consulting, a source said. In order to reduce inventories, Samsung has lowered the price of some models of smartphones sold in China by 10% to 20%, Canalys said, a strategy that could help Samsung recoup some of its market share in the second half of the year. Samsung is also planning to launch a midrange smartphone product line called Galaxy A, which offers many high-end Galaxy S features but is more competitive in price compared to Chinese smartphones, according to people familiar with the matter. Galaxy A will first land in the Chinese market. Lower prices will add to the downward trend in the operating margins of the handset business. Chang Sea-jin, a professor of management at the South Korea Institute of Science and Technology, said Samsung was concerned that the move would undermine the high-end brand image it had built over the years, but Samsung didn't cut prices because it tried to maintain its high-end brand image last year.