Samsung Electronics have forecasted a fall of 37.4% in year-on-year operating profit. It predicts a profit of $4.74 billion for the final quarter of 2014. The company has been struggling during recent years, with many consumers opting for tablets and smartphones from cheaper brands. Its flagship Galaxy smartphone has lost significant market share.
Competition in the smartphone market has become extremely fierce, particularly in Asia where companies like the phone manufacturer Xiaomi have doubled their revenue. It is now widely regarded as the number one company of its type in China. Experts say that Samsung must be more competitive if they are to avoid losing further market share. Some say that the tech giant has failed to offer anything truly original or innovative recently, with the company merely offering slight improvements on existing models. Commentators claim that they must unveil something truly revolutionary in order to stay ahead of the competition.
Samsung recently called upon tech companies to make an extra effort to collaborate with each other in order to open up the ‘Internet of Things’ in which various household appliances would be able to be monitored and controlled remotely via the web. It claimed that progress is likely to come to a standstill if companies don’t attempt to work with each other.
Do you feel Samsung could be doing more to raise the bar? Maybe you’ve bought a cheaper tablet or smartphone and are happy with your choice? Tell us below.