Samsung’s fight in the smartphone world

Samsung's many smartphone models was once considered its strength

Copyright CNN 2014

HONG KONG (CNN) – Ask Hong Kongers what phone they want to buy, and this is the overwhelming answer: Apple Apple, Apple, Apple.

Why? Better design and re-sale value are the most common answers here.  It all adds up to more trouble for global tech giant Samsung as earnings are hit by growing competition on several fronts.

The great strength of Samsung has always been the sheer number of phones it makes. This is just a selection of models of the more than 30 smartphones that Samsung produces. But that strength is also becoming a weakness. At the top end of the market, the galaxy note 4 is being challenged like never before by the iPhone 6 which has a bigger screen. And at the bottom end, this $100 Samsung is being challenged by Xiaomi, that is a new Chinese brand and many say it’s doing it better and it’s doing it cheaper. ”

The Apple-Samsung rivalry is, of course, legendary and it remains the key battleground. Talk to sellers in this popular mobile phone shopping mall and right now they say it’s going apple’s way.

“If apple haven’t made the iPhone 6, 6plus Samsung sales would be good. But most people now are going for apple first,” said Lo Gau, G-World Mobile.

Globally Samsung still dominates in the smartphone market, but market share is falling down seven percent in the second quarter.  At the same time, Xiaomi overtook Samsung in market share in china, the world’s largest smartphone market.

Samsung has the ability to turn this fight around, says leading analyst Mark Newman, “Samsung really needs to be more aggressive and compete with the Chinese with better specs and lower pricing but they can do that because they have a much better lower cost structure and vertical integration on a much bigger scale than any of these competitors. If they’re more aggressive they can still get profit and actually put pressure on the Chinese and gain back some of the marketshare they lost recently.”

The clear message this tech powerhouse may be down at the moment, but it’s certainly not out.

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