Samsung suffers its worst quarter ever – but it's still number one

Samsung suffers its worst quarter ever – but it's still number one

Samsung recently recorded its worst ever company performance – and it's all thanks to the now-recalled Galaxy Note 7. It's not all doom and gloom for the South Korean giant, as they're still the number one smartphone manufacturer in the world. Read on for more details.

Samsung has been a force to be reckoned with in the smartphone market. Its ability to innovate in terms of design and technology, coupled with the sheer volume of devices it had been able to pump out every year, has secured its position at the top.

Following the recall of the high-end (and highly-flammable) Galaxy Note 7, it was expected that this would be enough to push Samsung out of first place. Interestingly though, this has not been the case as it has still been able to retain its place as the top device manufacturer in the world today. But Samsung has not managed to come out of the Note 7 fiasco smelling of roses, as it is now coming to terms with it's worst ever company performance. 

AndroidPIT samsung galaxy note 7 review 7589 off white flag
Samsung threw a blanket over the Galaxy Note 7. / © NextPit

A recent report released by the market research firm Gartner shows how Samsung has fared in recent months. While Samsung was still able to sell more smartphones than any of its competitors, the third quarter of 2016 has been its worst both in terms of sales and market share.

This time last year, Samsung's market share was at 23.6 percent, whereas now it is down to 19.2. To add insult to injury, the most recent quarter recorded Samsung's sales as the worst ever, with demand for its devices dropping to 14.2 percent. The last time the company saw such a significant downturn was a decline of 12.3 percent back in the fourth quarter of 2014.

The third quarter of 2016 has been Samsung's worst both in terms of sales and market share

When the first Note 7 recalls started 18 months ago, there was some speculation that Samsung's competitors would benefit the from the device's decline. Ultimately, this was not the case, as only Huawei, Oppo and BBK were able to increase their sales and market share. Even Samsung's strongest rival, Apple, saw little if any benefit from the Galaxy Note 7 debacle, as iPhone sales also dropped in the third quarter by 6.6 percent.

The indicators are that Samsung is working hard to repair the damage caused to the brand by the Galaxy Note 7, so it will no doubt be investing heavily in development and marketing in the future to ensure it can regain the trust of its customers. 

Was the fiery decline of the Galaxy Note 7 enough to send you a new manufacturer? What can Samsung do to win back its customers? Let us know in the comments below!

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  • Of one thing you can be pretty sure indeed; the Galaxy S8 will be the most spectacular phone of that moment with a solid technical base. Think of someone building your phone like his or her life quite literally depends on you buying it and it not breaking down any moment soon; I'd be quite happy to buy that phone!

  • Many reputable companies, accross many industries have had massive product recalls and survived it. Samsung will exit the Note7 recall with its reputation in tact. Very satisfied with my S6 edge of 17 months, and I am eagerly awaiting the S8.

    C'mon, really? Samsung has been around since 1938. Was this their worst quarter in 80 years?

  • Samsung should not have Rushed out the Note 7 just because Apple were going to Release there new iPhone 7 models,so its themselves to Blame,but this now could be better new for Galaxy or Android users,as Samsung now must pull out All there Best to make there Future Galaxy S8 a really outstanding phone,plus it might now stop Samsung concentrating what Apple as to offer and make there Galaxy phones more Amazing

    • Who says they rushed it?

      •   46
        Deactivated Account Nov 19, 2016 Link to comment

        Samsung themselves admitted they rushed the Note 7 with out proper testing. Plus it has been in a dozen articles, even some on this site.

    • Please i got my self into a stupid contract for 2 years i was so happy with the note7 now i dont really want ro upgrade to the next best thing cause they, they have broke me and im so done with it all its not WORTH it anymore. I'll wait till it breaks or hell freezes over even though i love the note line ill stick with gs7e for now. Even Though Samsung moves like a snails ass in their updates

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