In 2014 Samsung got its highest position ever as per most valuable brands worldwide . They where 7^th worldwide – which is the highest position they got since 10+ years , and one spot higher than in 2013 .

Nevertheless this success has nothing to do with the smartphone / mobile phone business of Samsung . On the contrary the third quarter the earnings have gone down up to 60% - which is most probably the biggest tumble in Samsung history .

There are several reasons for this fall , Samsung in few words is getting attacked in both low and high end market . An Android phone is an Android phone, after all, and it's tough for a manufacturer like Samsung to stick out and offer a unique experience that can't be copied by an Asian manufacturer and pump out increasingly impressive hardware – selling in tiny margins . Brands like Xiaomi and Micromax is a good example .

On the high end side – although Samsung drop the price on their highest earners like S5 and Galaxy Note – eating its own margins – the coming of their highest competitor Apple with their two new iPhones put the pressure even more higher.

One of the biggest problems and challenges that Samsung has to face is the luck of innovation on the software side in order to stand up against Apples IOS or other Android makers .

The bright side is that its electronics business expands beyond smartphones. Mobile may be its biggest source of profit by a longshot, but its electronics division is incredibly diverse through its TV, appliance, and chips businesses, to name a few.

It also pumps billions into research and development, so if Samsung can't land on the next big thing now, it's likely nimble enough to adapt when a new trend does begin to take off.

Author: Janis Tsouroupidis, handelot.com

Source:
http://tech.firstpost.com/news-analysis/samsung-profits-slump-by-60-fall-of-another-mobile-conglomerate-in-the-making-237033.html

http://www.businessinsider.com/samsung-profit-decline-2014-10