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Lack of local market skills Samsung share shrink to 3%

According to market statistics 2.5 million cellphones sell-out in Pakistan every year, in which 50 percent market share captured by Chinese handsets, Nokia has 35 percent share, Apple got 4 percent, other brands have 8 percent share, while the Samsung, who claims worldwide leader get only 3 percent in the most lucrative telecom market

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s a world leader in digital technology Samsung Electronics is progressing into a new era in product development, corporate culture and contributions to the global society. But it’s hurting to compare Samsung’s performance in Pakistan, our telecom sector is spreading its wings across the length and breadth of the country; cellular subscribers crossed a bench mark of 114.61million in population of 188 million with tele-density around 66 percent. According to market statistics 2.5 million cellphones sell-out in Pakistan every year, in which 50 percent market share captured by Chinese handsets, Nokia has 35 percent share, Apple got 4 percent, other brands have 8 percent share, while the Samsung, who claims worldwide leader get only 3 percent in the most lucrative telecom market. On its website, Samsung says, “in order to achieve our goals, we understand how important it is to build relationships and have full support from first class suppliers. Samsung Electronics is looking for potential world-class partners with innovative and distinctive technologies for collaboration & creating new business opportunities. Together with suppliers, we will work together towards a common goal: To be the World's best. If you would like to be a partner with Samsung Electronics; together we will create the future of digital experiences”. But, when we look at their performance in the local market, it seems that, there is a huge vacuum with reality. The difference between words and actions speak for itself. They are enjoying their deep sleep as their shares going down with each passing day.

It’s very shocking to know that Samsung which claimed Pakistan’s top selling brand imported just 19,204 handsets in Pakistan; the main reason of failure is Samsung management; It’s a shock; Samsung is struggling to get some good candidates for its Pakistani market, who can kick-off their operations

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According to Federal Bureau of Statistics (FBS) released the import of Samsung handsets figures for the month of February 2012 recently. It’s very shocking to know that Samsung which claimed Pakistan’s top selling brand imported just 19,204

handsets in Pakistan. One can imagine that Samsung handsets share depicts its popularity and credibility. There are many reasons but main reason of failure is Samsung management in Pakistan. It’s a shock; Samsung is struggling to get some good candidates for its Pakistani market. Those who are currently running Samsung business are ignorant of local market demands and knowledge. They are mere enjoying high salaries but have no interest in boosting the market share for Samsung in local market. The head is responsible for managing and controlling the company’s business and day-to-day operations with the aim of securing significant, sustained increase in the value of the company. Samsung totally failed to provide good services to the customers as major customers have numbers of complaints regarding sales and services, helpline non-attendance, inferior quality handsets, etc. The popularity of Chinese handsets in Pakistan is due to multi-functions, design, low cost and much more battery lifetime as compared to Samsung cellphones, which have lack innovation, high price, poor battery time and poor service. On the other hand, Nokia still has 35 percent market-share is the talented local management with rich native market knowledge. Mobile phone users in Pakistan reached 114.61 million and its population is 180 million – higher by 2.1 percent than the last year’s. The country’s population has been growing at a decelerating pace but still Pakistan has one of the highest population

growth rates in the world. The imports of mobile handset witnessed growth of 58 percent in the first quarter of the current fiscal year 2011-12 compared with corresponding period of previous fiscal year, reflecting high domestic demands of customers for multiple brands. According to the figures of Federal Bureau of Statistics (FBS), the expenses of mobile handsets are on the rise as Rs 14.25 billion were spent on the imports of various brands. As per estimates, the handset sales have increased to 0.125 million handsets on monthly basis having price range between Rs 1,000 to Rs 55,000. According to the dealers the mobile handsets market is changing its dynamics constantly in the past three months with number of global and local branded phones increasing their shares tremendously. These include: Apple, Nokia, HTC, LG, ZTE etc, but Samsung is continuously walking on the slippery path, as its shares declining with rapid pace, if the top management of the Korean mobile phone maker fail to decide to change it current management in Pakistan, it would be no more to survive in the most promising market in the region. A stitch in time saves nine, if the top executives of Samsung don’t make their minds to change its Pakistani team, it would be too late to recover the loss, the current local management is really denting the image of Samsung in the minds & hearts of Pakistani mobile lovers. Apple is the new player in the market and getting its position better and better, while the old player Samsung is losing its feet. 


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