Excess Inventory has its drawbacks: Samsung does not agree
Sep 04, 2014
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When new technology pools in, it is always economical and cheaper too. When Samsung was king in the low and middle tier of phones, the company made a huge impact on all the other phone brands in 2013’s quarters: each and every one of them to be exact!
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Times change, and Nokia told a story that Samsung may be following due to its excess inventories and same-old-designs year after year without innovation on the outside. What we get with every flagship phone that they throw in the market is an updated chipset, an upgraded hardware on the inside, and a better screen with a better camera. What we do not get is the exterior design. That counts. For many customers design is the only deciding factor and that is why many go for other brands, in fact many even shift from Samsung to other international brands only because they get almost the same features on the inside with a superior “Outside”!
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The second quarter of 2014 shows a 24.5 % drop in profits in comparison the last year’s profits. The many reasons Samsung shares with us are: excess inventories which needed to be used in other phones, new competitors entering in the markets of China and Korea, and their low to mid-range phones receiving a much lesser acceptance all over the world. The design is outdated, the features are excessive but “Extra”, and the overall package is not attractive anymore as it used to be a few years back. For instance the Amoled screens caught our eyes when we saw them for the first time in early 20th century, but not anymore do they please us thanks to better IPS panels found in competing brands; equally valuable in terms of market goodwill to be exact! Its dire time Samsung renew their inventory schemes.
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