It was an adventurous year for Samsung, they reformed their design policies moving to a much more premium region, made their software less frustrating and that’s just in the smartphone section. The company just recently posted their Q4 earnings pointing at a 15% increase with numbers shifting from 5.3 trillion from last year to 6.1 trillion Korean won (USD$5.1 billion) between October and December. However, analysts expected a bit more targeting at a profit of around 6.6 trillion won and also, there was a 7.5 percent drop from the previous quarter.
The profits showed only a negligible growth (53.0 trillion Korean won against 52.7 trillion won) if compared to the same quarter last year which does help in maintaining the costs but also tells us that the company failed to improve their position in the market even with all those changes. This clearly states how the company is struggling to keep up with the increasing stiff competition from new manufacturers that are offering respectable smartphones at a bargain price.
Sales of their flagship smartphones have continued to disappoint with poor performance, the company lost a colossal amount of $8.0 billion in market value in 2015 as a result.
The damage was partially cured by their business in chips and display panels. That is mostly due to the fact that a lot of OEMs operate on Samsung’s own semiconductor units used in processors — including Apple.
“The profit from semiconductors and display panels offset the weak performances in smartphones and consumer electronics in 2015,” said Greg Noh, analyst at HMC Investment Securities.
Excerpt from the reports analysts revealed, the company’s CEO recently specified that 2016 is going to be another tough year for the company mostly because the company is expected to face strong competition in the areas of smartphones, TVs and other major businesses.
Samsung is trying to stand out by improving their software, one of them being Samsung Pay. These numbers though don’t provide us the complete story as revenues from all the divisions will be revealed later this month.
The company started facing downfall in the year of 2014 when their profit numbers fell from 10.1 trillion won in the third quarter of 2013 to 4.6 trillion marking a significant dent. They’ve been launching a couple of smartphones in the budget segment lately hoping to get back the glory but with the dominance of new OEMs, it is tougher than ever to break in.