Tag: mobile technology

According to the electronics giant, it was a considerable influx of competition that caused the lower than expected results.

Wall Street analysts and investors, alike, were disappointed by the technology news that was recently released by Samsung in terms of its earnings, which missed the predicted mark by a notable amount.

Now, the tech giant has announced that the reason that the earnings were not as hoped, was due to competition.

This is not the first time that the company has had to leave technology news that shows that it knows how to excel but that it faces a considerable struggle when it comes to trying to maintain a tremendous market share across a landscape that is continually growing in its competition. The South Korean electronics company has shown several times that it is strong when it comes to leading the way but that it finds the situation challenging once a range of other players start to catch up in the game.

The Samsung technology news release reported second quarter earnings for 2014 which showed a 20 percent profit drop.

This, when compared to the same quarter during 2013. The company also saw a decrease in its revenue by 8.9 percent. This is the first time that the company recorded a year over year net profit drop since 2011 in the third quarter. Since that time, it has been maintaining a steady climb in this area.

That said, the Wall Street Journal has been reporting that Samsung has every intention of bringing two new high end smartphones to the market shelves “soon”. In all likelihood, this will occur before the end of the year. The strategy will be to help to hold off any more decline in revenue or losses in the market.

According to a technology news statement made by the company, “Prospects for growth remain unclear as competition over global market share intensifies in the mobile industry.” The second quarter of 2014 saw the company’s shipments at 74.3 million smartphones, which was strikingly below the predictions that had been made by Wall Street about the device sales under that brand name.

Alibaba is showing strong interest in acquiring Snapchat

Alibaba, China’s largest e-commerce organization, may be looking to invest in photo messaging application Snapchat. The app has become widely popular, used heavily by those that want to share pictures and short videos with the people they care about. Alibaba is reportedly in talks with Snapchat regarding financing, which could value the application at $10 billion. Why Alibaba is showing interest in Snapchat is something of a surprise considering the company’s focus on commerce, but Alibaba has been growing increasingly mobile-centric over the past year.

Snapchat is resilient to the attractive offers produced by companies like Facebook

Snapchat has yet to show any interest in the acquisition proposals offered by other companies. Facebook recently offered to purchase Snapchat for $3 billion, an offer that was rebuked by CEO Evan Spiegel. Though Snapchat may not be looking to be acquired by a larger company, that does not mean these companies will stop trying to buy it. Alibaba has considerable financial clout, and the offer that the company makes to Snapchat could change the mind of Spiegel.

Alibaba could use Snapchat to compete with Tencent in the social space

Alibaba has an interest in mobile applications like Snapchat because its primary rival in China, Tencent, currently holds dominance in the social and gaming fields. Tencent’s WeChat application is one of the most widely used in the world, and the company has recently introduced mobile commerce services to the platform. Alibaba has missed out on the mobile messaging craze, focusing instead on e-commerce. Now, however, Alibaba may be looking into engaging in the mobile messaging space, and Snapchat may be the best tool through which to do so.

WeChat proves that a social application can become an effective mobile commerce tool

Snapchat does not support mobile payments in any way, but that could change in the future. The WeChat application had been nothing more than a messaging platform until very recently. The application can now be used to purchase products from certain retailers and order taxi services in some cities in China.