Samsung mobile amps up after disappointing financial quarter
Samsung Electronics have introduced two new companions for their smartphones. The Gear 2 and Gear 2 Neo are the two brand new smartwatches added to the Samsung family in hopes that wearable tech will help profit growth in the upcoming financial quarters.
After disappointing quarterly earnings at the end of 2013, Samsung isn’t worried about a decline to their stock price. “Looking at the quarterly earnings trend, we expect 2014 to follow last year's pattern of a weak first half and a strong second half as usual,” said Robert Yi, Samsung’s head of investor relations.
Over the last year Samsung has been in heavy competition after new releases by both Apple and Nokia began spreading through the mobile phone market. BBC reports that expanding into the new wearable
Samsung's new Gear 2 Neo in wild orange.
Photo courtesy of Samsung.com
tech sector, not yet cornered by Apple, will help boost Samsung’s profitability due to the lack of competition.
Sarah Rotman Epps, a former Forrester analyst, told the International Business
Times, “Smartwatches, which connect to your smartphone, are going to create an entirely new category of computing in the coming year."
Samsung hopes to capitalize off this upcoming trend and dominate the market before the iWatch, Apple’s answer to the new smartwatch niche, is released.
Although Samsung has managed to maintain its dominance in the mobile phone market, cornering over 30 per cent of the smartphones sold, they have decided to cut the previously gigantic marketing budget for their mobile phones. The New York Times has credited this cut to the weak sales of Samsung’s high-end smartphones, but the advertising budget may have been shifted into the development of the newly released upgrades for their Galaxy S smartphone.