SEOUL From the way it selects smartphone components to the designs it brings to market, Samsung korea Electronics (005930. KS) provides undergone a painful process of busting from its past to invert a slide in its phone business.
For example , the tour's largest smartphone maker in pain over camera specs for the flagship Galaxy S7 till the last moment - eventually defying industry convention simply by opting for fewer pixels in return for improved autofocus functions and low-light performance, the move that contributed to earlier success.
It also pared back again its product line-up, conquering internal resistance, enabling that to streamline production, a good executive said.
The handset business has now stabilized, together its best profit within nearly two years in January-March, though historically low smartphone industry growth still simply leaves Samsung looking for the "next big thing".
"We've right now gotten to a point where we are able to secure a baseline profit set up market stagnates, so long as all of us don't make a bad error, " said Kim Gae-youn, vice president in charge of Samsung's mobile phone product planning. "I'm assured we can hold our floor. "
After peaking inside 2013, a sharp drop in mobile profits exposed Samsung as slow to adjust to the particular changing market: its spending budget devices were overpriced and unappealing versus Chinese products, and the 2014 version of its Galaxy S flopped.
That will prompted a cull amongst executives and stoked trader worries Samsung might not be capable to recover as rivals which includes Apple (AAPL. O) plus China's Huawei Technologies [HWT.UL] and Xiaomi [XTC.UL] acquired market share at its expense.
There was clearly no sweeping, across-the-board repair. Rather, Samsung embarked 2 yrs ago on an overhaul of which included a shift from the phone-for-all-needs approach towards a new line-up that emphasized financial systems of scale.
It renewed design, using metal structures and curved screens, in addition to gave high-end features for example organic light-emitting diode (OLED) screens to its low- and mid-tier products.
DIGITAL CAMERA CONUNDRUM
As Samsung ready to launch its Galaxy S7 phones this year, executives returned and forth over regardless of whether to use a 12-megapixel rear digicam that shoots better at nighttime and has improved auto focus, or even stay with a 16-megapixel count number. At the last moment, these people opted for 12-megapixels - an unusual step down in an business fixated on higher figures.
This meant a change within approach for a company recognized to tout the highest specs for its flagship products, and professionals required convincing, Kim mentioned. They were swayed by information showing consumers want more a high pixel count.
"In the past, based on our earlier decision-making process, we in no way would have gone back, " Ellie said in an interview in Samsung's headquarters campus inside Suwon, south of Seoul.
The move worked. Over fifty percent of U. S. S7 buyers surveyed cited camera quality as a key feature, compared with a third of all smart phone buyers in the first one fourth, according to Kantar US Information.
The same mindset shift offered Samsung confidence to release a Galaxy 7 series that looks similar to its forerunner. This incremental upgrade received initial scepticism, but the S7 phones have beaten anticipation and could set a new first-year sales record for the To the south Korean firm.
Samsung should still convince investors the recent improvement is lasting, and that innovative products are inside the works to grow revenue. A few attribute its rebound partially to Apple's weaker overall performance, and cost-cutting.
"I believe they will try to imbue typically the Note (phone) with a lot more transformative change such as new-technology under the new leadership, compared to fine-tuning we saw using the Galaxy S7, " said Kim Hyun-su, an account manager with IBK Expense & Securities, which keeps Samsung shares.
Long-time cellular chief J. K. Tibia ceded day-to-day management keep away from when Dongjin Koh grew to become president of the handset device in the biggest leadership in order to date under the conglomerate's heir-apparent Jay Y. Lee.
Samsung's operating profit is likely to be flat this year and grow just 3 per cent next year, according to 43 experts polled by Thomson Reuters news agency I/B/E/S.
LESS IS MORE
Shedding pounds its product portfolio has been another departure from the past, when Samsung launched variants to soak up as much need as possible. As market development stalled, that approach was not a longer cost effective.
It eliminated unpopular models and produced common platforms, with more cell phones using the same parts. Specialist Counterpoint says Samsung has shed close to a third from the product portfolio.
That proceed also had to overcome inner resistance.
"If you're in the trenches, you want to have a device gun, a grenade, the mine on hand, " Kim said. "There are also various needs depending on individual marketplaces, so regional sales personnel naturally can't be happy once the company moves to rationalize plus restructure from a global framework. The transition process will be painful. "
The product cull paid off; the revamped models helped Samsung recover in big markets such as Of india. "There was a feeling the sheer number of phones on the market was confusing for customers, inches said a Samsung India executive, declining to be recognized as he was not authorized to schedule an appointment the media.
Despite a good first quarter, analysts stay cautious about Samsung's outlook, along with researcher Gartner predicting worldwide smartphone sales growth will certainly slow to 7 percent this year.
Samsung has also however to recover in China, the particular world's top smartphone marketplace, where it ranks 6th with 7 percent business, according to Strategy Analytics, nicely behind local rivals such as Huawei, Xiaomi and OPPO.
Samsung's Kim says their focus now is on premium-end smartphones - those charging $600 and above -- where not all industry gamers have the muscle to contend.
"There's still room with regard to growth in the market, " this individual said. "This segment desires innovation, which has turned it into an area that requires large capital equipment investments. "
(This version of the tale has the 16th paragraph fixed to show the reference would be to Note phone, not tablet)
(Reporting by Se Younger Lee, with additional confirming by Nataly Pak in addition to Joyce Lee in SEOUL and Himank Sharma within MUMBAI; Editing by Tony a2z Munroe and Ian Geoghegan)
TAG : ALL OF US, SAMSUNG, ELEC, SMARTPHONES, The japanese, Company News, Communications Equipment (TRBC), Electrical Components and Gear (TRBC), Graphics, Technology Products (TRBC), Technology (TRBC), Reorganization, rearrangement, reshuffling / Reorganization, Corporate Governance, Analyses, United States, Industrial Equipment / Equipment (Legacy), South Korea, India, Wireless Telecoms Services (TRBC), Science, Growing Market Countries, Asia or Pacific, Major News, Semiconductors (TRBC), Corporate Events, Pc and Electronics Retailers (TRBC), Software (TRBC), Computer Hardware (TRBC), China (PRC), Telecommunications Solutions (TRBC)
For example , the tour's largest smartphone maker in pain over camera specs for the flagship Galaxy S7 till the last moment - eventually defying industry convention simply by opting for fewer pixels in return for improved autofocus functions and low-light performance, the move that contributed to earlier success.
It also pared back again its product line-up, conquering internal resistance, enabling that to streamline production, a good executive said.
The handset business has now stabilized, together its best profit within nearly two years in January-March, though historically low smartphone industry growth still simply leaves Samsung looking for the "next big thing".
"We've right now gotten to a point where we are able to secure a baseline profit set up market stagnates, so long as all of us don't make a bad error, " said Kim Gae-youn, vice president in charge of Samsung's mobile phone product planning. "I'm assured we can hold our floor. "
After peaking inside 2013, a sharp drop in mobile profits exposed Samsung as slow to adjust to the particular changing market: its spending budget devices were overpriced and unappealing versus Chinese products, and the 2014 version of its Galaxy S flopped.
That will prompted a cull amongst executives and stoked trader worries Samsung might not be capable to recover as rivals which includes Apple (AAPL. O) plus China's Huawei Technologies [HWT.UL] and Xiaomi [XTC.UL] acquired market share at its expense.
There was clearly no sweeping, across-the-board repair. Rather, Samsung embarked 2 yrs ago on an overhaul of which included a shift from the phone-for-all-needs approach towards a new line-up that emphasized financial systems of scale.
It renewed design, using metal structures and curved screens, in addition to gave high-end features for example organic light-emitting diode (OLED) screens to its low- and mid-tier products.
DIGITAL CAMERA CONUNDRUM
As Samsung ready to launch its Galaxy S7 phones this year, executives returned and forth over regardless of whether to use a 12-megapixel rear digicam that shoots better at nighttime and has improved auto focus, or even stay with a 16-megapixel count number. At the last moment, these people opted for 12-megapixels - an unusual step down in an business fixated on higher figures.
This meant a change within approach for a company recognized to tout the highest specs for its flagship products, and professionals required convincing, Kim mentioned. They were swayed by information showing consumers want more a high pixel count.
"In the past, based on our earlier decision-making process, we in no way would have gone back, " Ellie said in an interview in Samsung's headquarters campus inside Suwon, south of Seoul.
The move worked. Over fifty percent of U. S. S7 buyers surveyed cited camera quality as a key feature, compared with a third of all smart phone buyers in the first one fourth, according to Kantar US Information.
The same mindset shift offered Samsung confidence to release a Galaxy 7 series that looks similar to its forerunner. This incremental upgrade received initial scepticism, but the S7 phones have beaten anticipation and could set a new first-year sales record for the To the south Korean firm.
Samsung should still convince investors the recent improvement is lasting, and that innovative products are inside the works to grow revenue. A few attribute its rebound partially to Apple's weaker overall performance, and cost-cutting.
"I believe they will try to imbue typically the Note (phone) with a lot more transformative change such as new-technology under the new leadership, compared to fine-tuning we saw using the Galaxy S7, " said Kim Hyun-su, an account manager with IBK Expense & Securities, which keeps Samsung shares.
Long-time cellular chief J. K. Tibia ceded day-to-day management keep away from when Dongjin Koh grew to become president of the handset device in the biggest leadership in order to date under the conglomerate's heir-apparent Jay Y. Lee.
Samsung's operating profit is likely to be flat this year and grow just 3 per cent next year, according to 43 experts polled by Thomson Reuters news agency I/B/E/S.
LESS IS MORE
Shedding pounds its product portfolio has been another departure from the past, when Samsung launched variants to soak up as much need as possible. As market development stalled, that approach was not a longer cost effective.
It eliminated unpopular models and produced common platforms, with more cell phones using the same parts. Specialist Counterpoint says Samsung has shed close to a third from the product portfolio.
That proceed also had to overcome inner resistance.
"If you're in the trenches, you want to have a device gun, a grenade, the mine on hand, " Kim said. "There are also various needs depending on individual marketplaces, so regional sales personnel naturally can't be happy once the company moves to rationalize plus restructure from a global framework. The transition process will be painful. "
The product cull paid off; the revamped models helped Samsung recover in big markets such as Of india. "There was a feeling the sheer number of phones on the market was confusing for customers, inches said a Samsung India executive, declining to be recognized as he was not authorized to schedule an appointment the media.
Despite a good first quarter, analysts stay cautious about Samsung's outlook, along with researcher Gartner predicting worldwide smartphone sales growth will certainly slow to 7 percent this year.
Samsung has also however to recover in China, the particular world's top smartphone marketplace, where it ranks 6th with 7 percent business, according to Strategy Analytics, nicely behind local rivals such as Huawei, Xiaomi and OPPO.
Samsung's Kim says their focus now is on premium-end smartphones - those charging $600 and above -- where not all industry gamers have the muscle to contend.
"There's still room with regard to growth in the market, " this individual said. "This segment desires innovation, which has turned it into an area that requires large capital equipment investments. "
(This version of the tale has the 16th paragraph fixed to show the reference would be to Note phone, not tablet)
(Reporting by Se Younger Lee, with additional confirming by Nataly Pak in addition to Joyce Lee in SEOUL and Himank Sharma within MUMBAI; Editing by Tony a2z Munroe and Ian Geoghegan)
TAG : ALL OF US, SAMSUNG, ELEC, SMARTPHONES, The japanese, Company News, Communications Equipment (TRBC), Electrical Components and Gear (TRBC), Graphics, Technology Products (TRBC), Technology (TRBC), Reorganization, rearrangement, reshuffling / Reorganization, Corporate Governance, Analyses, United States, Industrial Equipment / Equipment (Legacy), South Korea, India, Wireless Telecoms Services (TRBC), Science, Growing Market Countries, Asia or Pacific, Major News, Semiconductors (TRBC), Corporate Events, Pc and Electronics Retailers (TRBC), Software (TRBC), Computer Hardware (TRBC), China (PRC), Telecommunications Solutions (TRBC)
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