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When it comes to growth, the low end is where it's at. But that's also where competition is harshest. Samsung said that more than 50 percent of its smartphone units will come from the low end in 2015. In the third quarter, the company's profits tumbled in part because it sold more cheap smartphones than pricey devices. It also said it plans to go head-to-head with its rivals in inexpensive phones. Samsung has some tough choices ahead, as CNET has noted before. It has to decide just what it's willing to give up to succeed in the emerging markets and just what success there means: profitability or market share. It can go the path of Apple by keeping its device prices steady but sacrificing its No. 1 position. Or it can load lower-end devices with high-end specs and cut prices to gain share at the cost of razor-thin margins.
Samsung also has to attack the lower end without hurting its brand as a high-end vendor, It could do that by creating a new brand just for cheap devices in places like China and India, That would allow iphone case kevlar it to keep Samsung synonymous with high-end devices but still address the lower end of the market, But it also could present problems of its own, Samsung spends a lot of money on marketing its name, A new, non-Samsung brand wouldn't benefit from any of that, Companies such as Xiaomi and fellow Chinese vendor Huawei are willing to sacrifice profits -- or even outright lose money -- to gain customers, The companies believe they'll make money once their volumes increase and component costs decline, so they price high-end devices cheaply..
In China, for instance, Xiaomi puts high-end specs in its phones but sells them for mid- or low-end prices. The company has been in the smartphone industry for only four years, but it has already surpassed Samsung in the world's biggest phone market with devices such as the $154 Redmi Note or the $322 Mi 4. By comparison, Samsung's Galaxy S5 flagship phone, which has specs similar to the Mi 4, retails for about $650 without a contract. Samsung executive Kim said that the company will make its mid- and low-end smartphones more competitive by using different displays and materials, as well as upgrading the cameras and differentiating its user interface. It also will make its devices more competitive price-wise, though that likely will hurt margins in the near term.
In the third quarter, Samsung's profit margin tumbled to about 7 percent from 20 percent, its lowest since the beginning of 2009, according to the Wall Street Journal, Samsung still aims to keep its margins at a double-digit rate, Kim said, There are concerns Samsung won't succeed at maintaining such margins, iphone case kevlar "We remain doubtful about the company's ability to recapture significant momentum in the budget market, given that Chinese players such as Xiaomi and Lenovo have been increasing their dominance in the sub-$300 segment by offering products with high-end specifications at value prices," said research firm Trefis..
Samsung prides itself on how quickly it can roll out products. Its first smartwatch, the Galaxy Gear, came together in about a year. By comparison, Apple has been working on its smartwatch, named the Apple Watch, for more than three years and won't start selling it until sometime in 2015. But Samsung also admitted on Wednesday that it was too slow in responding to upcoming, low-cost vendors in China and other emerging markets. "Our responses to these rapid shifts in competitive landscape were not quick enough to avoid recent weak earnings results," said Robert Yi, Samsung senior vice president of investor relations.
Samsung knows almost better than anyone what can happen when a giant moves too slowly, After all, it was the biggest beneficiary of the sluggishness of BlackBerry, Nokia and Motorola Mobility, All missed the huge consumer shift to smartphones, Samsung did not, something that allowed it to overtake Nokia as the world's biggest handset vendor in early 2012, But a knee-jerk reaction by Samsung could result in dozens of new devices and an even more scattershot approach, It also iphone case kevlar could mean even more marketing spending and lower prices, furthering weighing down on profits, All of those actions could actually have worse results than simply doing nothing..
The Taiwanese company posted a third-quarter net profit after tax of NT$600 million ($19 million). That's roughly a quarter of the profit made in the previous three months, but a big improvement over this time last year when HTC reported its first loss in a decade. HTC isn't out of the woods yet. Its quarterly revenue of NT$41.9 billion ($1.38 billion) declined 11 percent from a year ago, and more than 35 percent from the second quarter, when the One M8 launched. As one of the few pure mobile device manufacturers left in the industry, HTC has struggled to keep pace with larger rivals such as Apple and Samsung. Its results underscore the company's dilemma: It lacks the scale and resources to effectively compete against the players in the premium category, while upstarts such as Xiaomi and Chinese tech conglomerates such as Huawei are pressuring it from the bottom.
HTC earlier this year set out to expand its portfolio beyond its single flagship HTC One smartphone, bringing back the Desire family of smartphones in an effort to appeal to more budget-conscious consumers, The company hasn't given exact figures for which phones are selling well, In a period described as a "challenging quarter", HTC said the HTC One M8 and Desire line of smartphones as "holding their own or expanding their markets despite stiff competition." HTC also identified the Desire 610 and 510 as strong performers in the US and Europe, while the Desire 816 was "solid" in Taiwan, China, India and the iphone case kevlar Middle East..