Android Sales Are Down, Samsung Suffering

It's not a good time to be anyone but Apple in the smartphone market. Whilst the iPhone 6 continues to set sales records it's looking like the Galaxy S6 has had a much rougher ride. As a result Samsung is expecting to miss it's sales estimates for the quarter - a seventh successive such failure.

Whilst many Android OEMs are suffering poor sales and falling revenues Samsung is the highest profile because of its position at the top of the sales tree and how quickly it rose to get there.

Personally I don't find the success - or lack of it - to be a big surprise. Samsung abandoned too many of the values that its customers held dear when it designed the S6. The expectation was that a premium product would result in Apple-like sales growth. As I pointed out at the time the Android premium market is small and Sony and HTC have loyal followings in that niche. The fact that both are struggling too just proves that the premium Android is only getting smaller.

If anything the Android market is gravitating ever closer to the budget market and Android  OEMs are going to have to work harder to generate profit from smaller revenues and a smaller per unit selling price.

So whilst Samsung wants to compete with Apple in reality it needs to be more concerned with competing with the Huawei and Xiaomis of this world.


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