Investors are worried over Samsung’s Q2 result in spite of it posting record revenue figures. The reason behind this is said to be growth in smartphone shipment by Samsung getting stalled. Samsung has managed to grow its smartphone shipments quarter over quarter by just 4 to 8% and it is clear that in spite of Samsung Galaxy S4 launched, Samsung hasn’t been able to stop slide in growth of smartphone sales .
Reports say that Samsung has spent a lot on marketing SGS4, but still its sales are disappointing. From the source article,
Samsung spent more on marketing than R&D in 2012 for the first time in at least three years, and the S4 was launched in March with a Broadway-style show in New York. The company also invested heavily in distribution channels including opening brand shops in 1,400 Best Buy stores in the United States. But the glitz and glamour has failed to arrest a slide in handset sales growth, and shipments are seen rising only 4 percent to 8 percent in the second quarter from the previous quarter.
So, seems the Samsung’s “high specs” and “big display” tricks have been countered successfully by competitors and they have managed to thwart its growth. Nokia may be leading the pack of these companies with sustained attack at both low and high end. Reason behind this is Nokia is expected to grow it shipment by more than 27% in Q2. So, if Nokia’s smartphone sales hits a figure of more than 7 million, the high-end smartphone share captured by Lumia 920, Lumia 925 and Lumia 928 may be well at the expense of Samsung’s flagship. Lumia 520 is already a success story at low-end, so Samsung may have started feeling the heat from Lumia devices at all price points.
Though, it is difficult to point out Samsung’s slide and Nokia’s rise at this juncture but this may well be the “Transition point“.
Thanks Patrick for the Tip. Cheers!!