Samsung Smartphones Lose Ground In 2014

Samsung's smartphone marketshare retreats as Chinese vendors turn up the heat.

Samsung's galaxy of smartphones contracted sharply during 2014. The company may still own the market, but the decline is notable after Samsung enjoyed several years of strong growth. Apple and several other competitors maintained their positions in the market, but Chinese handset makers are nipping at their heels.






Worldwide smartphone shipments reached 1.17 billion units during 2014, according to data from TrendForce. Of those, 453.4 million -- 40% of the total -- came from Chinese vendors, which represented six of the top ten phone makers. Samsung shipped about 326.4 million units, giving it 28% of the global market. That represents an annual growth rate of only 8.4% and a drop from its 2013 market share of 32.5%.

Competitors pummeled Samsung from every direction. Apple challenged Samsung's leading Galaxy Note phablets with the iPhone 6 Plus, while Samsung's entry-level and mid-range devices were sidelined by low-cost Chinese brands. Samsung reduced smartphone shipment forecasts several times during 2014, recorded a 60% drop in profits during the third quarter, and warned of a similar drop for the fourth quarter. The turn of fortune has caused some soul-searching in Seoul. The company rearranged its electronics business units late last year, folding its mobile software unit into the phone business and shuffling dozens of executives.


Source:
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