Smartphonetechie
We all know Samsung’s marketing budget has always been huge but this year it has been more than the normal. According to the company officials, this year they had to spend extra amount on marketing unwillingly just because of the low demand of old devices. A lot of mid range and low end devices are filling up in the warehouse of Samsung and in order to make sure that these devices sell Samsung has to spend extra amount on advertising.
According to the reports, this dip in sales with added increase in spending on the advertisement will effect the overall profit of the company. Samsung is expected to have 24% less profit than what it had in the same quarter last year. This dip in the sales is due to increased competition in European market especially from Motorola as people prefer to buy 4 G enabled smartphone instead of 3G enabled. Moreover, the market in China is greatly influenced by local companies such as Xiaomi and Huawei. This has also effected the sales of Samsung in China which is one of the largest smartphone market.
When we talk about 7 and 8 inch tablets the sales is mainly effected due to increasing trend of 6 inch phablets. So, at this moment everything is going against Samsung and this will result in at least 8 to 9% dip in sales as compared to last year.
Samsung believes that fluctuation in currency rates has also effected the overall profit of the company. However, company believes that with official launch of Samsung Galaxy F and Samsung Galaxy Note 4 the overall financial situation will get better.
It was expected. You cannot always expect to keep making money by providing shit to the people.