Samsung is in a fierce rivalry with Apple. Both of these companies are bringing innovation in their product in order to grab each other’s market share in the niche smartphone market. Galaxy s7 by Samsung was released in February this year. It is one of the best Smartphone by Samsung. Let us quickly review its specs in detail.
Galaxy s7 appealed the users for its stunning looks. It has a 5.1 inch quad HD display. Camera experience has been improved for the users. Galaxy s7 is offering a 12MP back camera. Moreover, this smartphone is also offering fastest wireless charging. Selfie cam of 5 megapixels also has an excellent quality. Samsung in this galaxy model also introduced water resistance technology. It means that you do not have to worry about your phone getting sunk and breaking down due to water spilling.
Galaxy s7 impact on Samsung revenues
Samsung experienced an unprecedented amount of profits in the second quarter of 2016. The profit amounted to $7.00 billion in the second quarter. It was nearly 17% higher than the previous quarter. This rebound gave Samsung a hope for its new models. In 2015, Samsung faced an estimated loss of $8 billion in its market share. Galaxy top end smartphone were facing fierce competition from Apple, while low price Smartphone’s were facing tough competition from new end players i.e. Huawei, Xiaomi etc.
The increasing profits for Samsung clearly show that the bad days for Samsung are over. It is rising again against all its small and big rivals. Interestingly, the last two quarterly profits are in complete contrasts with its traditional rival Apple. Apple is seeing a decline in its profit from the beginning of this year and is planning for some structural changes in order to improve its position.
It is estimated by one analyst that Samsung nearly shipped 76 million units of Galaxy s7 in the first quarter. This success of Samsung has helped the company to recover the consumers lost enthusiasm.
Another good strategy by the Samsung is its entrance in the low price smartphone market. Many people trust Samsung brand more than their local or other Chinese brands. With a good marketing strategy, Samsung is entering nearly in all segments. The prices of its smartphones are starting from as low as $100.
Moreover, Samsung Company has its official presence in many small countries. This gives Samsung an edge over Apple. Apple officially does not have presence in many countries and new model of its smartphones arrive there illegally. Many people in small countries do not go for Apple because of reliability issue. On the other hand, Samsung has official presence in most of the countries. It helps them in devising right marketing strategies and targeting potential consumer base.
Hence, it is expected that Samsung through its innovation drive will beat Apple in the future. The main challenge that the Company will face in the next two quarters will be to keep the revenue pace higher. Since, most of the demand of s7 has been catered; other small smartphone sets have to contribute in Samsung profit sheet.