Samsung needs to step up to the plate
With its smartphones performing well globally and the hype generated behind a court order temporarily barring the sale of its latest tablet in the US, Samsung has been presented with the perfect opportunity to experience unprecedented growth.
But in order to achieve this, the company needs to step up to the plate and learn to fight dirty to defend its territory because there are a lot of new comers entering in the market.
The first order of business will be for the company to broaden its strategic thinking in order to avoid the bottlenecks it experienced in delivery of its new S III smartphones.
Demand far outweighs supply for this product, particularly in the US, and if Samsung got their estimations right they could have sold over 2 million more units. Even though Samsung brags about sales likely to go over 10 million in the first two months after the launch of the SGS III, that figure could have been higher. Sales in Europe were slowed down by a manufacturing bug pushing down the pebble blue SGS III 2 to 3 weeks down the stretch, and the handset is being delayed on most carriers in the United States.
The second order of business will be for the company to push hard on the sales of its SIII phones in China (the world’s biggest smartphone market) where the company faces stiff competition from the low end of the market.
Analysts at some of the South Korean brokerages that lowered second-quarter earnings estimates said that an increasing number of Chinese companies selling inexpensive smartphones could pressure profit margins for Samsung’s low-end models.
And finally, Samsung must learn from their mistakes with the distribution of the S III and make sure that the sales of their Galaxy 10.1 tablet are unhindered.
Despite the fact that the company has been hit with a temporary ban which prevents it from selling its Galaxy 10.1 in the US, a report from Morgan Stanly suggests that international purchase intentions are higher than those in the US.
The report shows that 41% of the lucrative Chinese population are extremely interested in purchasing a tablet while 46% are only somewhat interested. There is also a significant interest in Japan where 16% of the population are extremely interested in purchasing a tablet while 39% are only somewhat interested.
What Samasung needs to be aware of is the fact that competition will be fierce in the tablet market when Google and Microsoft launch their tablets. And indications are that this will be sooner rather than later.