Samsung has declared that its profits might experience a dramatic 26% fall when compared with the ones obtained in 2013. Even financial amateurs will realize that this is an event to be worried about.
Thus, the Korean company recognizes that the sales of tablets and smart phones has suffered quite a beating recently. Thus, they are making serious efforts to catch the eyes of customers in China and Europe where they have to compete against fierce and experienced rivals such as Apple, Lenovo, Huawei and ZTE.
Samsung considers that its tablets are selling so poor because customers need little time to update these gadgets, unlike smart phones.
However, the smart gadgets created by Samsung are quite popular. For example the Galaxy phone managed to obtain the lion’s share on many smart phone markets. Nonetheless, there are investors who are not so convinced by the mobile strategy adopted by the company since the stock increased with almost 11 per cent in 2014.
The problems that the Korean company has to face are neither new nor specific. Because of the extremely innovative smart phones that keep popping up on the market, it has been very difficult for Samsung and other electronic companies to convince clients to buy upgraded alternatives of the old product.
This is not the first that Samsung has to face financial difficulties. During the first quarter of 2014, the Korean company declared that they had just had a drop in their profit especially when compared with the 2013 sales. Many experts express the fear that the whole year will be a problematic one for Samsung.
Meanwhile, the Korean company is doing lots of efforts to calm down its investors. It is convinced that less money spent on marketing as well as a strong request for its new items, the recently created Galaxy Tab S, will determine an increase in selling towards the summer end and the beginning of autumn.