The Korean smartphone vendor is counting losses due to a sharp drop in demand

Корейский поставщик смартфонов подсчитывает убытки из-за резкого падения спроса

Statistics confirm that the gadgets of South Korea are losing their popularity. The sales level fell to a minimum of 2002.

Employees of the Ministry of science and information technology South Korea with the support of the Institute IITP analyzed the situation on the export market of mobile phones. Only last year the sales dropped to a critical level, which is not achieved for 16 years and was only 14,62 billion dollars.

Experts claim that the rate of decline only from 2017 amounted to 23%, which in monetary terms equals to 4.4 billion dollars. The key reason is the decline in sales of the major players in this market: Samsung and LG. In particular, the sales of smartphones Korean companies in China fell by 37%, and in the U.S. – 10%. What industry will be the current year, is unclear. Samsung in the sleeve there is really a new flagship smartphone, and flexible camera, but what will happen to LG, until we can only guess.

The observed pattern is due to the lull in the smartphone market in General, and onset of active Chinese suppliers, leading to aggressive price wars. Samsung to strengthen the weakening position in the smartphone market is planning to form a new series of devices Galaxy. One of them will be the Galaxy M. This family is expected to absorb the low-end devices, which are still produced under the designation Galaxy J, Galaxy On Galaxy and C. Obviously, to revise the business strategy in the smartphone market will have LG.