According to media reports last week that Samsung's Chief Financial Officer, Li Shangxun (LeeSangHoon) warned that Samsung's second-quarter earnings would not "too good". Samsung did not explain why, but, given the reliance on Samsung mobile phones businesses profit, handset sales weakness could be a "culprit".
If Samsung's mobile phone business is really in trouble, may be related to the rapid growth of a major rival. Earlier this week, said growth in handset sales in the first half of this year than last year, Remy 271%. Millet's rapid growth and even challenges the Apple looking overseas for growth.
Millet: China's fast-growing star
Millet was founded 4 years ago, but has already attracted many top executives – the biggest being Google's Hugo? para (HugoBarra), caused an uproar in the Chinese mobile phone market. KantarWorldpanel market research firm said in a report released April millet over Samsung smartphone sales, given the recent quarter Samsung was China's first great wisdom master machine manufacturers, so it is a notable phenomenon.
Millet's success was largely a by-product of its lower-priced. Millet's flagship m 3 is a high-end smartphone models, sold in the Chinese market is only about US $ 300 (about 1849). In view of the annual household income is thousands of dollars for ordinary Chinese consumers, the phone is quite attractive.
Erode Samsung customers
Technology blog website TechCrunch published an article saying, millet's many customers are first-time Smartphone buyers, but some one-fourth is Samsung cell phone users. And Samsung, millet smart phones using the Android operating system.
Millet is a highly customized version of Android version of Android, but it had no effect on product sales. China has few consumers really use Google's official GooglePlay, mainly through a third-party app store to download the Android app.
Apple in the Chinese market for growth
Given exclusive use of iOS operating system, compared with Samsung, Apple or other markets in China are millet is less likely to erode the user.
However, millet emerging market ambitions continue to pose a threat to Apple. Although Apple has tightly controlled the United States, and Japan and other developed markets, analysts turned to drive iPhone demand growth in China and other markets.
To a large extent, promoting iPhone demand growth in emerging markets. Last quarter, Apple iPhone sales exceeded analysts ' expectations, mainly because of demand from emerging markets set records. Apple, for example, business revenues in China rose 5%, Apple executives noted that the company's total revenues reached a record high in BRIC.
Investors may also be considered a low-end phone products, is the transition of Chinese consumer products, they end up buying an Apple iPhone. The reality is that mobile phone fairly high-end, Remy, for example, m 3 configurations can be comparable with Apple's iPhone5s.
If millet continues to attract first-time smart phone buyers of Chinese consumers, defections from Apple can do to attract them is difficult. If millet entering emerging markets, it will pose a strong competitive threat to Apple, Samsung.
Regrettable is that millet was not a listed company, public investors are unable to share the fruits of its rapid growth. Smartphone makers--especially Apple and Samsung's shareholders should pay attention to the rapid growth of millet. In emerging markets such as China, millet was the main competitive threat to Samsung and Apple.
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