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.
The mobile design chief has now stepped aside following criticisms of the Galaxy S5 smartphone.
Some of the latest mobile technology news coming from Samsung has revealed that the company has accepted the resignation of Dong-hoon Chang, and that he will be replaced by the assistant head of his department, Min-hyouk Lee.
This resignation of the mobile design chief is in response to heavy criticism of the company’s flagship product.
The Samsung Galaxy S5 was expected to make outstanding mobile technology news, but since its release, it has been the recipient of a great deal of negative press. Consumers were disappointed by what they felt was a design that failed to impress. In fact, it rapidly became known as the “Band-Aid Phone”, as the plastic dimpling on the case of the device reminded people of the texture of the popular adhesive bandage product.
As the department that led to the generation of this negative mobile technology news, changes were expected.
Even beyond the performance of the device, the response that was generated by the appearance of the case was astounding and greatly negative. The front of the device is dominated primarily by the screen and looked like any other attractive and high quality smartphone. However, when the device was flipped over, the back revealed a look and texture that went against what people were expecting from Samsung’s latest flagship product. As this is a premium, high end device, this is the type of mistake that can be fatal to a design – and to the head of the design department’s job.
Even among those who didn’t find the case to be ugly, there wasn’t a great deal of enthusiasm expressed. With a price tag the size of that of the Galaxy S5, the attraction felt by consumers must be notably better than “adequate”.
Now that the mobile technology news of Chang’s resignation has been accepted, it looks as though the vice president of mobile design, Min-hyouk Lee, will be stepping up into the newly vacated top position. He has already played an extensive role in the original creation of the Galaxy series design that caused Apple’s iPhone to lose its massive dominance over the smartphone marketplace.
