Can A Revival Turnaround Samsung’s Dwindling Fortunes?

samsung business

Samsung’s smartphone business is facing quite a dilemma – their smartphone shipments are down more than ever before and this has hit the company’s bottom line.

Its profits have been consistently declining every quarter and reports are rife that some of the top mobile executives are on the verge of being ousted – due to the complete failure of the smartphone business of Samsung. Samsung’s flagship smartphone, the Galaxy S5 is reportedly not selling and there is speculation that the company is expected to cut production by over 25%-30% of the smartphones it is currently manufacturing.

Samsung has fallen into heaps of trouble because Android phones have now become a household commodity. When all phones work on the same Android software platform with the same features, the only differentiating factor is the price and brand. More and more people have come to realise this fact and have slowly shifted away from the premium-priced phones of Samsung – adopting the same Android-based technology from other manufacturers at a fraction of the cost.

Samsung’s brand is no longer special. With such high prices, Chinese mobile start-up company Xiaomi is slowly finding ways to undercut it. Within a span of four short years, Xiaomi now sells the highest number of phones in China – far ahead of Samsung and even Apple. Xiaomi phones are half the cost of what Samsung charges for a analogous piece.

These factors have put Samsung in a dilemma – they could lower their prices, but this would wipe out profits. And there’s no real guarantee that people would shift back to buying Samsung phones – since they come with standard Android-backed technology.

So, is there something that Samsung can do to change their fortunes? Hiring a small group at Samsung to build new revamped software will hardly save Samsung’s business from total devastation. The challenge is primarily for Samsung to come up with something special – a unique technology that sets is apart from other regular Android phones.

Samsung still has millions of loyal advocates. If it can create an exclusive Samsung software smartphone, it would have a great chance of staying above competition. That doesn’t mean this idea is without its own set of problems. For one, it would take a long time – realistically around two years or so before anything new entered the market. At this point, no one knows how two years will change this dynamic industry.

If Samsung has any chance of reviving its lost hopes, it needs to be conclusive, bold and perhaps even a little crazy. Otherwise, the company is going to be bulldozed by the likes of Xiaomi and several other Android phones that cost close to nothing.