When I churned out Are Samsung Mobile’s days numbered? on Tuesday, I hadn’t realised I was but a single cog in a veritable clockwork of negativity.
Joining me were Nitin Soni, director of corporate rating at Fitch, and more recently Bernstein Research analyst Mark Newman. Pay rise? You’re too kind.
On the whole, there’s not a great deal we can say in favour of Samsung right now. Unless the iPhone 6 is a complete disaster, Apple will continue to beat the South Koreans at the premium game, while the Chinese manufacturers are furiously chipping away at the low end.
Throw in dwindling profits and market share, and a general sense of disarray (what the fug’s going on with Tizen? What’s the point in the Samsung Galaxy Alpha? Are you favouring Tizen or Android Wear for wearables?), and things don’t look too good.
As reported in The Wall Street Journal, Nitin Soni concurs, suggesting that Samsung’s global smartphone market share will fall from 31% last year to 25% next year. To be fair, that’s not exactly a wild prediction considering Samsung’s market share in Q2 2014 was 25.2%. Oh, Nitin.
Mark Newman is even more melodramatic, urging investors to “react now before it’s too late”, and suggesting that Samsung needs a “drastic change in smartphone strategy.”
In particular, Newman says Samsung should “offer more and charge less on low-end smartphones”, a strategy that’s clearly paying off for Chinese manufacturers.
Ending on a slight positive, Newman points out that Samsung still wins on scale, and could “cause a lot of problems” for those Chinese OEMs if it chooses to “turn the screws”.
Over to you, Samsung. Need a screwdriver?