Samsung is undoubtedly a force to reckon with in this market. This has been the case for many years but the emergence of small other manufacturers have put a lot of pressure on Samsung and this has affected its profits.
Samsung has just released its earnings report for the third quarter of 2015 (Q3 2015) showing how competition has affected its operations. Even with increased competition, Samsung has still managed to record its first profit growth in two years.
Samsung has said that this growth mainly came from its Semiconductor Business and Display Panel division. These helped the company record a profit of $6.4 billion during this period. This represents a growth of $3.6 billion from the same time last year. Combined revenue rose from $41.7 billion in Q3 2014 to $45.6 billion in Q3 2014.
Samsung’s mobile division also recorded positive figures as its profits grew from $1.54 billion in Q3 2014 to $2.1 billion in Q3 2015. “Samsung saw a significant increase in sales of smartphones in the quarter, compared with the second quarter with increased shipments of Galaxy Note5, Galaxy S6 Edge+ and the Galaxy A and J series,” the company revealed.
The Galaxy J series has been doing quite well in Kenya and this is very good news for Samsung. The company may not be able to maintain this though as competition gets tougher by the day. Something needs to do something drastic if it is to stay competitive in this market.
To conclude, Samsung has revealed that it expects to see positive growth from its tablets and smartphones going forward. This is because of the upcoming holiday season. Only time will tell how successful Samsung will be.