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05-23-2016, 04:42 AM
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To halt smartphone slide, Samsung rewrites playbook
SEOUL: From the way it chooses smartphone components to the models it brings to market, Samsung Electronics has undergone a painful process of breaking from its past to reverse a slide in its handset business.
For example, the world´s largest smartphone maker agonised over camera specs for its flagship Galaxy S7 until the last moment - ultimately defying industry convention by opting for fewer pixels in exchange for improved autofocus features and low-light performance, a move that contributed to early success. It also pared back its product line-up, overcoming internal resistance, enabling it to streamline production, an executive said. The handset business has **w stabilised, and had its best profit in nearly two years in January-March, though historically low smartphone industry growth still leaves Samsung looking for the "next big thing". "We´ve **w gotten to a point where we can secure a baseline profit even if the market stagnates, so long as we don´t make a bad mistake," said Kim Gae-youn, vice president in charge of Samsung´s smartphone product planning. "I´m confident we can hold our ground. "After peaking in 2013, a sharp drop in mobile profits exposed Samsung as slow to adjust to the changing market: its budget devices were overpriced and unappealing versus Chinese offerings, and the 2014 version of its Galaxy S flopped. That prompted a cull among executives and stoked investor worries Samsung might **t be able to recover as rivals including Apple and China´s Huawei Tech**logies and Xiaomi gained market share at its expense. There was ** sweeping, across-the-board fix. Rather, Samsung embarked two years ago on an overhaul that included a shift from a phone-for-all-needs approach towards a line-up that emphasized eco**mies of scale. It revamped design, using metal frames and curved screens, and gave high-end features such as organic light-emitting diode (OLED) screens to its low- and mid-tier products. CAMERA CONUNDRUMAs Samsung prepared to launch its Galaxy S7 phones this year, executives went back and forth over whether to use a 12-megapixel rear camera that shoots better in the dark and has improved auto focus, or stay with a 16-megapixel count. At the last moment, they opted for 12-megapixels - a rare step down in an industry fixated on higher numbers. This meant a change in approach for a company k**wn to tout the highest specs for its flagship products, and executives required convincing, Kim said. They were swayed by data showing consumers want more than just a high pixel count. "In the past, based on our past decision-making process, we never would have gone back," Kim said in an interview at Samsung´s headquarters campus in Suwon, south of Seoul. More than half of U.S. S7 buyers surveyed cited camera quality as a key selling point, compared with a third of all smartphone buyers in the first quarter, according to Kantar US Insights. The same mindset shift gave Samsung confidence to release a Galaxy 7 ****** that looks similar to its predecessor. This incremental upgrade drew initial scepticism, but the S7 phones have beaten expectations and could set a new first-year sales record for the South Korean firm. Samsung must still convince investors its recent improvement is sustainable, and that in**vative products are in the works to grow revenue. Some attribute its rebound partly to Apple´s weaker performance, and cost-cutting. "I think they will try to imbue the **te (tablet) with a more transformative change such as new tech**logy under the new leadership, than the fine-tuning we saw with the Galaxy S7," said Kim Hyun-su, a fund manager with IBK Investment & Securities, which holds Samsung shares. Long-time mobile chief J.K. Shin ceded day-to-day management in December when Dongjin Koh became president of the handset unit in the biggest leadership change to date under the conglomerate´s heir-apparent Jay Y.Lee. Samsung´s operating profit is expected to be flat this year and grow just 3 percent next year, according to 43 analysts polled by Thomson Reuters I/B/E/S. LESS IS MORE Slimming down its product portfolio was a**ther departure from the past, when Samsung launched variations to soak up as much demand as possible. As market growth stalled, that approach was ** longer cost effective. It phased out unpopular models and created common platforms, with more phones using the same parts. Researcher Counterpoint says Samsung has shed close to a third of its product portfolio. That move also had to overcome internal resistance. "If you´re in the trenches, you want to have a machine gun, a grenade, a mine on hand," Kim said. "There are also different needs depending on individual markets, so regional sales staff naturally can´t be happy when the company moves to rationalize and restructure from a global structure. The transition process is painful. "The product cull paid off; the revamped models helped Samsung recover in big markets such as India. "There was a feeling the sheer number of phones in the market was confusing for customers," said a Samsung India executive, declining to be identified as he was **t authorised to speak with the media. Despite a solid first quarter, analysts remain cautious about Samsung´s outlook, with researcher Gartner predicting global smartphone sales growth will slow to 7 percent this year. Samsung has also yet to recover in China, the world´s top smartphone market, where it ranks sixth with 7 percent market share, according to Strategy Analytics, well behind local rivals such as Huawei, Xiaomi and OPPO. Samsung´s Kim says his focus **w is on premium-end smartphones - those costing $600 and above - where **t all industry players have the muscle to compete. "There´s still room for growth in the market," he said. "This segment wants in**vation, which has turned it into an area that requires huge capital equipment investments. أكثر... ??????? ??????: To halt smartphone slide, Samsung rewrites playbook || ??????: ahlam1399 || ??????: اسم منتداك
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