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Nikkei: Samsung looks to Japan’s Sony, Hitachi to tackle growth crisis
Samsung Elec’s Future Business Planning Division is looking into how Japan’s Sony and Hitachi have successfully revived their growth in recent years after falling behind South Korean companies in the 1990s, Nikkei reports.
It is being reported that Samsung has not changed its business model centered on semiconductors, smartphones, home appliances, and displays for over a decade. As a result, all four sectors are losing competitiveness to Chinese companies.
The current crisis in Samsung’s mobile and semiconductor businesses has prompted it to revisit the management philosophy of its late chairman, Lee Kun-hee.
Project “Fall and Rise of Japan’s Electrical Industry”
Samsung Elec’s evaluation project includes in-depth research into how Sony shifted its core business from electronics to digital cameras and content, such as games, music, and movies.
Under the supervision of Chairman Lee, the company is also studying Hitachi, which has transformed itself from a manufacturer of machinery and railroad vehicles into a tech company.
- Both companies restructured their business models after facing crises in the 2000s.
Samsung is also analyzing the strategies of Japanese industrial conglomerates such as Mitsubishi. These companies thrived as trade brokers until the 1990s and successfully transitioned to resource development in the early 2000s.
“We are reviewing over 100 cases globally, not limited to Japan,” a Samsung representative said.
The research also includes Silicon Valley companies such as Google and Amazon, which have been continuously evolving in response to the rapidly changing business landscape in the era of artificial intelligence (AI).
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Samsung retains smartphone lead amid sales dip as Apple grows
Canalys published their report on the Q3 2024 worldwide smartphone market. The report shows Samsung shipments declined, while Apple, Xiaomi, Oppo, and Vivo grew YoY.
According to the data, Samsung retained the smartphone market crown, shipping 57.5 million phones with 19% market share, however, the shipments dipped 2% year over year.
Apple came second, with shipments posted at 54.5 million units against an 18% market share. The iPhone maker secured a decent growth of 9% YoY during the third quarter.
Xiaomi, Oppo, and Vivo ranked third, fourth, and fifth, respectively. A recent report revealed that Vivo surpassed Xiaomi and Samsung for the first time in the Indian market in Q3 2024.
Company | Shipments | Market Share | Growth
- Xiaomi – 42.8 million | 14% | 3%
- Oppo – 28.6 million | 9% | 8%
- Vivo – 27.2 million | 9% | 24%
Canalys noted that global smartphone shipments grew 5% year on year in Q3 2024, reaching 309.9 million units, the strongest Q3 performance since 2021, thanks to aggressive launches.
Apple did its best in the third quarter, closing the gap with Samsung. The Galaxy maker maintained its dominance in terms of units shipped, however, Apple was just about to surpass it.
Chinese phone makers continue to eat Samsung and Apple’s market share. After both leaders, Xiaomi, Oppo and Vivo occupied third to fifth ranks on the Canalys market research chart.
The launch of the iPhone 16 series will be converted into results of the fourth quarter ending December 31. The start of 2025 would come as sweet news for the iPhone maker.
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Samsung hints at shipping Galaxy S25 with 3nm Exynos 2500 chip
Samsung still wants the Galaxy S25 series to ship with 3nm Exynos 2500. During the earnings call, the company chip arm hinted that Exynos is still in the pipeline, which could possibly power the next-generation Galaxy S series.
There are rumors that the Galaxy S25 series could solely use Snapdragon 8 Elite. Exynos 2500 is Samsung’s dream project that uses a cutting-edge 3nm process. However, a poor yield rate is hurting the company’s growth ambitions.
System LSI is Samsung’s mobile chip arm that produces Exynos chipsets too. The company disclosed that it will focus on supplying SoCs for flagship products of a major consumer. It’s also preparing for the next-gen 2nm products.
Samsung’s chip arm during Q3 earnings call:
The System LSI Business plans to concentrate on supplying SoCs for flagship products of a major customer while preparing for next-generation 2nm products.
Here, System LSI would have been aiming at Samsung Electronics. This is due to Exynos is only used in Samsung’s mid-range and flagship devices. And the “flagship products” term probably refers to Exynos in more than 1 model.
We still assume that something is yet to happen. There would be more turning points in the Galaxy S25 3nm Exynos story. We can only expect credible inputs to appear next month, current scenario tells Snapdragon exclusivity in Galaxy S25.
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Source: Samsung One UI 7 Beta won’t release globally
Galaxy users may miss out on trying One UI 7 Beta as Samsung preps limited availability. While we’re seeing major changes in Samsung’s software strategy, the Beta Program expansion is unlikely, as per the source SamsonSir / X.
Samsung could launch the One UI 7 Beta Program in seven countries. The company has been availing the Beta Program in China, Germany, India, Poland, South Korea, the United Kingdom, and the United States.
Following the tradition, Samsung should have launched the One UI 7’s Beta in August and Stable in October. Meanwhile, the company pushed the schedule significantly, bringing Beta to the year’s end and Stable to the new Galaxy S announcement.
Wider Beta availability has always been a priority demand by Samsung users. With a broader reach, the company will be able to hear feedback from an even larger audience. However, it’s “almost” unlikely to happen this year, at least for now.
Last year, rumors spread claiming Beta expansion to countries in Southeast Asia. However, the Program’s market reach remains intact. We still wish the One UI Beta would be a global affair so all Galaxy users can experience the software early.
Samsung is seemingly on the verge of releasing the One UI 7 Beta Program. The Galaxy S25 series may launch in January next year. The final version of One UI 7 will also be released alongside the new product debut.
That said, the Korean tech giant would conduct Beta activity for two months. Therefore, chances are high that the Beta will go live within November this year. We are expecting big news to be dropped during SDC24 Korea on November 21st.