Samsung mobile handset is losing its reign: the price may drop soon!

The Dhaka Times Desk Samsung's mobile phone unit's recent report shows that their sales rate has dropped to 4 percent. From last January to March, the total income fell from 33.4 trillion or 32.3 billion US dollars.

The South Korean company says it has paid 18 percent subsidy in the last three months to keep its mobile phone unit running. That his income should be in harmony with his expenditure. Samsung is the most profitable mobile phone company in recent times. The company said it earned $7.57 trillion in the last four months, or about $7.5 billion in dollars. Its revenue in the previous three months was 7.3 trillion or 7 billion US dollars. Earnings rose just 2.7 percent. Samsung mobile company has played a major role in creating a strong position in the smartphone market with the Galaxy smartphone. They have been able to increase their total revenue in the past years with Galaxy smartphones. As a result of the strong market for Galaxy smartphones, Samsung managed to displace Nokia as the largest mobile phone company in 2012.

Be that as it may, this competition requires the Samsung company to produce smartphones at lower prices and lower margins in order to retain the smartphone market. At the same time the demand for smartphones is increasing day by day. As a result of which the smartphone market will expand more, technology experts believe.

Andrew Milroy, an analyst at Frost & Sullivan, a market analyst company, said, “Analyzing the current state of the market, it appears that the current smartphone market is on the way to improvement. In order to survive here, the customer needs as well as the profit margin has to be lower. This information is quite clear to us from the decline rate of Samsung smartphones.” He also said, 'Samsung is leaning towards making more low-cost smartphones to sustain their business'.

The latest information is that 'Samsung has started making low-cost mobile handsets to capture this emerging market. Which may come to the market in a few days'. However, their main competitors are Huawei and ZTE.

Source: BBC