Samsung’s phone business is confronting an existential crisis. Korean industry insider publication The Elec has reported that a so-called special evaluation for the company’s mobile division has begun, which is an internal procedure that begins when “The top leadership considers that there is a problem with a particular business unit”. The review was conducted in response to Samsung Mobile’s disappointing profitability and supply chain management issues.
The evaluation was also triggered by the company’s poor performance in 5G devices. To be honest, the problem is not insignificant, according to critics. After an extraordinarily amazing recovery which does not seem to be slowing down anytime soon, Xiaomi has overtaken Samsung for the first time ever. The galaxy s21 series appears to be Samsung’s worst-selling s-series flagship in recent memory. According to strategy analytics the company have declined to the fourth position when it comes to 5g phones, trailing not only Apple but now also oppo and vivo. While it is still theoretically driving most of the income from all of the android brands Revenue from all Android brands is beginning to diminish, and its share is continuing to decline with the bbk brands merged together.
Brands such as Oppo and Xiaomi have already been considered as critical market pullers due to its capability to significantly influence the industry. However these figures do not tell the future, but they do indicate that consumers choose to obtain new affordable 5G devices rather than invest in a premium tech giant company.
Samsung has also lost the number one spot in Europe, which was once known as one of the company’s strongest markets, and is now being outpaced by xiaomi and fast-growing new entrants like as oppo and real me. It’s a similar scenario internationally; Huawei’s decline developed a massive void in the smartphone industry, which appears to have been filled entirely by xiaomi and the bbk brands, while Samsung has been dropping steadily. That is not to imply that Samsung is out of the game; in fact, we believe they are ideally positioned to take advantage on the fresh wave of foldables; the mobile business is really performing quite well in terms of profitability.
Samsung had suggested earlier that the upcoming foldable smartphones would offer "amazing new multitasking capabilities and enhanced durability."
Except for mobile phones the rest of the samsung electronics empire is actually making more money than ever had. The memory and semiconductor business are booming all around. It also includes rumours that even Google’s new tensor soc is at least partially co-engineered and manufactured by Samsung. Tablets and computers are healthy and growing with the new wear os revival the company is likely to become one of the leaders in wearables 2, etc. However, it is undeniable that Chinese phone manufacturers are gradually gaining the upper hand over them in terms of smartphones until something really big happens.
