China’s Xiaomi and India’s Karbonnare the beneficiariesIt appears from the latest revenue figures from Samsung that the handset giant is coming under great price pressure from local phone manufacturers. It is interesting to see that Samsung is struggling in key emerging markets such as India and China due to local competitors plus a lack of relevance for Chinese consumers who want more high-end devices. Samsung seems to be losing out to China’s Xiaomi and India’s Karbonnare. By contrast, when Apple recently shared its results these included growth in China, which accounted significantly for its increase in earnings.
Vasileios Tziokas, marketing manager with Upstream, commented, “There has been concern that Samsung could be the subject of poor results this quarter for a while now.”
He continued, “With a strong Won in Korea and slowing growth in the mobile phone market this is not surprising, especially as Samsung is stuck in the middle of an increasingly crowded marketplace.”
According to research Upstream conducted earlier in 2014 with analysts – Ovum, the Samsung brand is currently the most recognised in emerging markets.
However home-grown brands like China’s Xiaomi and Oneplus along with India’s Karbonn are set to make it difficult for Samsung to hold its position.
“These brands offer handsets with almost all of the specs users want for half of the price Samsung charges for their high-end handsets,” Tziokas observed.
he continued, “Also troubling for Samsung is that these home-grown brands are able to connect with consumers on a more personal level.”