Samsung announced on Monday that they that its third quarter earnings will be lower than expected. Samsung claims to reduce the average selling price (ASP) of their smartphones because of competing companies. This means that samsung will only make just under 4 billion instead of 4.1 trillion, this is 60% less than last year.
This is what Samsung claimed to do last year because of all the competing tablet and smartphone sellers that sell a similar products for cheaper.
A new company named Xiaomi will open soon in china which will sell high end products like Samsung but they will costs about half as much as Samsung's best phones.
Other companies like Apple are a huge competition for Samsung, Apple has released its new products (iPhone 6 and iPhone 6 Plus) which offers a bigger screen than all of the other Samsung phones.
Samsung is releasing its new Tablet (5.7-inch Galaxy Note 4) in the U.S which will have to compete against the new iPhone 6 Plus with an 5.5-inch screen which already has stellar reviews.
China will be an especially tough place for Samsung to compete. Interest for the iPhone 6 and iPhone 6 Plus is through the roof. And China is where many of those cheaper Android phones are sold. Samsung has to be cut the prices of its devices to compete with other companies.
1/4 - Thomas, again this is simply a summary of the article (it would be nice to have a link to the original as I feel some of the figures have been misinterpreted ("make just under 4 billion instead of 4.1 trillion" - are you sure??). Please remember the aim of this exercise is to summarise this article from the perspective of a Business Management student. How does this article relate to what we are learning in class/ the topics coming up and the 6 key concepts we must keep in mind? Review: http://sl2016bizmanlis.blogspot.de/p/blog-weekhow-to.html again and make sure you use labels to organise your posts.
AntwortenLöschen