Thursday, 24 July 2014

SYNAPSE CIRCUIT SAMSUNG LOSS

Above: The Samsung Galaxy Alpha! 
SYNAPSE CIRCUIT
SAMSUNG: LOSS?
PART ONE

Good afternoon, Synapse Circuit Readers. It’s great to see you today! It’s another scorching hot day and my fan is set to warp speed!

Gosh! The mighty Samsung making a loss! How?

#Samsung #GalaxyS5Prime #GalaxyS5Premium #GalaxyAlpha #GalaxyKZoom #GalaxyNote4 #GalaxyS5
SATURATION?
Samsung Electronics Co Ltd (KRX:005935) reported its second straight quarterly drop in profits mainly because of its loss-making flat-screen panel business and weaker demand for high-end smartphones in the first quarter of the year, but managed to narrowly surpass its revenue guidance for the quarter.

Hmmmm... The answer to the above is the competition on the rise... Remember this article: The Chinese Are Coming? Well, that’s what is happening at the moment; Chinese and other manufacturers are entering the market virulently!

Just go to your local supermarket here in the UK and you can pick up a HD 1080p flatscreen panel by unknown manufacturers at a relatively cost effective price compared to the known brands i.e. Samsung.

As far as smartphones go and a notion of a “weaker demand for high-end smartphones...” I am not too sure about that.
PIONEERS
Samsung faces a different market today whereby what used to be considered as a low-end phone is yesteryears high-end handset! Gosh! Shock? Horror? No! It is inevitable that with the advent of the Galaxy S4, S5, Note 2 and 3 that the S3 and Note were bound to come down in price. And, of course, we have the many competing manufacturer handsets such as the Sony Xperia Z1for as little as £18 a month line rental and the Huawei G6 for £14 per month – bargains! I don’t think that there is less of a demand for high-end handsets but due to austerity maybe some people are settling for less. And if that’s not enough there are manufacturers putting out high-end handsets at a lower price point such as Xiaomi’s recent announcement of its flagship Mi 4 that is said to be retailing at £190 and just look at what you are getting for that price: Qualcomm Snapdragon 801 2.5 GHz -core processor, 3GB of RAM, and a 5-inch 1080p screen. There’s a 13-megapixel rear-facing camera, a 8-megapixel front-facing camera and a 3080 mAH battery! It’s hard to beat, right? But this market was made possible by Samsung as it pioneered low to mid and high end markets as they went toe to toe with Apple and won! While it is true that Samsung have suffered losses it is because they opened up all the markets as mentioned above. I feel as though it is a price to pay for being at the forefront – in a way Samsung can write off those costs as promotion!

Samsung may do well to rethink its low to mid range handsets...

DESIRE
Could it really be that there is a weaker demand for high-end smartphones? I don’t think so! I mean just look at how people are anticipating this Galaxy Alpha Prime F and Note 4! I think many people are waiting for the absolute best! I have learned that LG’s G3 has sold 14.5 million phones in total thus so far while the Galaxy S5 has sold around 11 million since the launch. So, what does that tell you? I don’t know about you but that tells me that the Galaxy S5 is a knockout handset and if I were due an upgrade at the time of release I would have upgraded from my S4. But as it stands I will be looking at the S6! Anyhoo, I reckon people are just waiting for Samsung’s finest to drop!

Then there is the Galaxy Note 4 to come and yes there are the usual speculations on what the Note 4 will feature... Flexible screen? Metal case? I am not going to bother to throw my speculative hat into the ring as there is no telling what Samsung has planned for definite at this stage. I would imagine that the design ought to be a departure as Samsung have been getting a bit of flak for recent unadventurous designs of late.

As always, and probably not to Google’s liking, Samsung is going after Apple. Going after Apple means that Samsung will be pitching a number of handsets to combat the iPhone 6 hotly rumoured 4.7” and 5.5” screens said to be coming this September! Watch out! This is going to be interesting! Samsung Galaxy Alpha Prime F vs. Apple iPhone 6 4.7”! And it’s the Galaxy Note 4 vs. iPhone 5.5”! Get your tickets now!!! Ha ha!

THANKS FOR READING...
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