Today, Samsung has grown to become the largest technology firm in the world by revenue. However, this was not the case a few years back when phones were not smart and people just expected their phones to make and receive calls. At that time, there was only one market ruler in the mobile phone market, Nokia. With the launch of their N series no other company managed to match the sales or the revenue of the company. And just when we thought things would never change, Samsung released their first Galaxy Smartphone, Samsung Galaxy S.
The launch of the galaxy S smartphone would mark the beginning of the growth of the South Korean company in the industry and this growth is increasing every year. Infact each and every quarter the company is breaking old records and setting new ones. But how can a single Smartphone lineup change the position of the company to this extent? The key factor of their success has been providing the best possible features at the lowest price point. Samsung is not like Apple, focusing on the high end segment aiming to maximize profits from the sale of a unit. Samsung aimed to reach as many markets as possible and never neglected any market. So you will find Samsung phones right from the high end segment (Galaxy S, SII, SIII and SIV, Note, Note II) to the lowest end (Rex lineup, galaxy pop, chat) where you get a piece for a few bucks.
This policy by the company has indeed helped it grow onto become one of the biggest smartphone manufacturer in the world today.
Time has come for the Q1 results of the company and we were obviously expecting some record breaking figures from the company. Although the results are yet not declared and it would only be released by the end of the month, the company has released a rough estimate of their profits and sales and the figures are not at all disappointing.
The company estimates to record 8.37 trillion won in profits this quarter, much ahead of the forecast by leading industry analysts. A poll of the industry analysts showed that they expected the company to make around 8.3 trillion won in profits this quarter but the estimates by the company are well ahead of the predictions by the analysts.
The estimates show that the company has made sales of over 52 trillion won this quarter and has sold around 68-70 million units as opposed to 63 million units sold last quarter. This is infact good news for the company considering that Apple, the company’s chief rival has recorded around 30% fall in the iPhone sales this quarter.
The first quarter of 2013 was not that productive for the smartphone companies due to low demand, however Samsung managed to break through this barrier with its wide market reach and by providing over 30 handsets at various price points.
Seeing that Samsung has been posting record breaking sales for the past few quarters, we can clearly conclude that market reach and good quality products are indeed the key to success of any company.