NEW YORK: So far, Samsung has sold 12 million units of the Galaxy S5 against 16 million it sold of last year’s Galaxy S4. That 12 million is as well 40 per cent less than what the company had expected. According to the Wall Street Journal, the need of supply moved has enforced the company to raise its advertising budgets in a offer to frantically try and clear out warehouses.
The report also adds that JK Shin, Samsung’s head of mobile business, could face the sack or be moved to another area in the company.
While Samsung is still the biggest smartphone maker in the world, owning some 24 per cent of the global market, increased competition in China has forced some change. The company recently announced that it would be cutting the number of models it produces in an effort to compete with cheaper Chinese products, as local Chinese companies’ sales begin to skyrocket.
The company’s recent third-quarter earnings report showed earnings had declined 60 per cent compared to the same time in 2013. This was noted as a result of increased pressure in the smartphone market, from both the high end with companies like Apple and in the low end from Chinese brands like Xiaomi and Huawei.
With the company looking to “fundamentally reform” its smartphone line-up next year, on top of increased sales pressures, 2015 is looking to be a big year for the South Korean company.
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