As Samsung Electronics records quarterly operating profits surpassing the 10 trillion won (US$9.3 billion) mark, concerns are rising about the Korean electronics giant’s heavy reliance on its mobile business, which is estimated to account for around 65% of the total operating profits of the company.
Under such a situation, experts advise that Samsung must come up with new growth engines to protect against a time when the global smartphone market is saturated. Otherwise, they warn, the company could go the same way as former rivals Nokia and Blackberry.
Though Samsung is confident in making strong and continuous performance in earnings with strong sales of the Galaxy S4 and the recently-released Galaxy Note 3, market conditions are not entirely favorable for the company.
The premium smartphone market is showing slow growth, and Chinese competitors are catching up quickly with low and mid-priced smartphones. Apple has started to sell mid-priced phones as well.