Sam­sung stum­ble cre­ates op­por­tu­nity for ri­vals

The Myanmar Times - - International Business -

SMART­PHONE cus­tomers los­ing faith in Sam­sung have plenty of choice at a time when Ap­ple, Google and China’s Huawei are each push­ing new mod­els that up the fea­tures ante and do not self-com­bust.

“All of Sam­sung’s com­peti­tors are rub­bing their hands in glee,” said Thomas Hus­son, an an­a­lyst with the For­rester tech­nol­ogy re­search and con­sul­tancy firm.

“It’s ba­si­cally a good prod­uct, re­leased at the right time, but a slip-up, and we’ve seen in the past with Nokia or Black­berry that th­ese can have dis­as­trous ef­fects,” he added.

While it is too early to pre­dict a sim­i­lar dis­ap­pear­ance from the phone mar­ket of the South Korean com­pany, ri­vals are nip­ping at the heels of the mar­ket leader.

Th­ese in­clude not only Ap­ple and Chi­nese com­pa­nies like Huawei but also in­ter­net ti­tan Google, which en­tered the smart­phone mar­ket last week with its own de­vice – the Pixel.

“There will in­evitably be some mod­er­ate to mar­ginal ben­e­fit for Sam­sung’s hand­set ri­vals, more par­tic­u­larly Ap­ple, per­haps faster-grow­ing Huawei can ben­e­fit more from Sam­sung’s Note 7 tra­vails,” said an­a­lyst Ken Odel­uga at the on­line trad­ing firm City In­dex.

How­ever Ian Fogg, se­nior di­rec­tor and head of the mo­bile and telecoms team at the IHS tech­nol­ogy con­sul­tancy, said that “Huawei will be the big­gest ben­e­fi­ciary from brand dam­age to Sam­sung”.

One of the largest providers of net­work in­fras­truc­ture glob­ally, Huawei has been push­ing into the smart­phone mar­ket, in­clud­ing the top-end seg­ment with its P9 model that fea­tures a cam­era with two Le­ica lenses.

“Huawei will look to pick up sales right across its port­fo­lio,” said Mr Fogg, not­ing that it was al­ready the third-largest smart­phone maker.

“Like Sam­sung, it uses An­droid and of­fers smart­phones at a wide range of prices.”

The blow to Sam­sung is un­likely to be fa­tal, how­ever.

“Com­peti­tors might en­joy a short­term boost to sales as a re­sult of a ma­jor player hav­ing to with­draw its new model, though over­all it is likely to re­main a com­pet­i­tive mar­ket,” said Laith Kha­laf, an an­a­lyst at Har­g­reaves Lans­down bro­ker­age.

Part of the rea­son is that its com­peti­tors have their own chal­lenges to sur­mount. Huawei, for in­stance, still needs to build its brand in Europe and North Amer­ica.

And Ap­ple needs to re­cap­ture the ex­cite­ment around its prod­ucts that has dis­ap­peared in re­cent years.

Linda Sui, wire­less smart­phone strate­gies di­rec­tor at Strat­egy An­a­lyt­ics, said Sam­sung could lose “US$10 bil­lion or more” over the re­call.

“The loss of sales from the Galaxy Note 7 is only the tip of the ice­berg,” warned CMCMar­kets an­a­lyst Jasper Lawler.

“De­mand for the flag­ship Galaxy S8, sched­uled for re­lease early next year, could be se­verely im­peded by the loss of con­sumer con­fi­dence in the Sam­sung brand.”

Man­mo­han Sodhi, a pro­fes­sor of op­er­a­tions and sup­ply chain man­age­ment at Cass Busi­ness School in Lon­don be­lieves that it wasn’t bad luck as much as bad judge­ment.

“They should have fig­ured out the prod­uct but with Google com­ing out with the Pixel, they did not give it enough time,” said Mr Sodhi. –

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.