Samsung struggles to find fix for smartphone woes

Company pinning hopes on Samsung Pay; mobile market share, margins continue to slide

October 06, 2015 11:55 am | Updated 11:56 am IST - SEOUL

Samsung's efforts have not been enough to regain market share from Apple at the high end or Chinese markers at the lower end.

Samsung's efforts have not been enough to regain market share from Apple at the high end or Chinese markers at the lower end.

Samsung is yet to find a way to reverse a slide in market share or margins that is clouding its growth outlook.

The world's largest handset maker is forecast to post its first annual increase in quarterly profit in two years following a dismal third quarter in 2014. But profits and mobile margins are expected to contract on a sequential basis.

Efforts that didn’t yield results

Samsung has tried various fixes for its phone business. At the lower end, it launched new products while at the high end it switched from plastic to metal, introduced curved screens and cut the price for its flagship Galaxy S6 devices after sales fell short of high expectations in the second quarter.

While those measures have lifted Samsung from its earnings trough, they have not been enough to regain market share from Apple at the high end or Chinese markers at the lower end.

"Samsung is at a standstill," said Kim Hyun-su, fund manager for IBK Asset Management. "It's having trouble finding a way to create new demand for its smartphones."

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