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In A Growing Market Samsung Has Growing Problems

GfK released its report on smartphone sales for the last quarter and they offer some insight into who is buying what. For example phones with giant screens (bigger than 5" anyway) now account for one in two sales across the world. In China that number goes up to two in three. Premium devices are booming too.
And yet Samsung continues to struggle with its sales numbers. The company that all but invented the phablet market and owned the premium market with the S3 and S4.
The growth in phablet sales and premium phone sales both point to the success of the iPhone 6 and 6+. This seems to be the trend that Samsung has responded to with the S6 Edge and Edge+. There's no denying the two phones have showroom appeal, the screens are amazing to look at, with surreal levels of colour and detail.
The problem remains that the S6 Edge phones have no real use for the curved screen - unlike the Note 4 Edge, which delivered some useful functionality. For that reason I think that Samsung will fail to persuade potential iPhone buyers to switch. And by abandoning the strengths it had it makes it easier for its own customers to choose to go iPhone next.
The Galaxy Edge looks like a range of phones that can compete with the iPhone 6, but Samsung needs to find a more persuasive argument for buying one than 'it looks fabulous'.


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