Samsung admits weak demand for its phones is damaging profits

//

Engadget reports on Samsung’s quarterly earnings.

Samsung’s marketing budget has always been vast, but in the last quarter it was far larger than even the manufacturer itself would have liked. The company admits that it’s been forced to spend extra money on promotions for older and lower-end devices that have been filling up its warehouses due to “weak demand.” This dip in trade, combined with the extra spend on publicity, is causing the company’s recent, gradual profit decline to quicken: it now expects to earn around 24 percent less this quarter than it did a year ago, with underlying sales down by an estimated 8-11 percent.

When you have so many different phones and provide little or no support for the older and lower-end phones, why would people want to buy them? The key lies in focus.

Another thing they need to ask themselves is it whether it is worthwhile to splurge on advertising? Especially when they people they sponsor actually prefer to use the iPhone.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *