It has been found that global smartphone manufacturers other than Samsung Electronics, Apple and Huawei are having a hard time getting out of the red.
LG Electronics was in the red for the fifth consecutive quarter in the second quarter of this year while Lenovo, which ranked fourth in the global smartphone market last year, recently posted an annual loss for the first time in six years. Lenovo jumped into the industry two years ago by purchasing the mobile phone business unit of Motorola for no less than US$2.8 billion. Since then, it has faced intense competition both at home and abroad, failing to come up with its own unique product and enhance its brand power in the presence of such a large number of competitors.
Blackberry’s operating loss for February to May this year amounted to US$670 million as well and the situation is not that different for HTC and Sony. These companies are struggling to survive by resorting to restructuring and cut-throat marketing, but it is doubtful that their efforts will bear fruit in the near future with the growth divide in the industry becoming a lasting trend these days.
“As is well known, the global smartphone market is a saturated market and an increase in market share is not easy for any player in it,” said an industry insider, adding, “Those on the losing side are having an increasingly slim chance in the market as the growth divide is accelerating with the market growth stagnant.”