Samsung Smartphone Business Faces Pressure as Exports Fall and Costs Rise

Samsung’s smartphone division is facing renewed challenges as exports decline and production costs increase, raising concerns about profitability and competitiveness in the global mobile phone market.

According to industry data, Samsung’s smartphone exports have dropped amid slowing demand in key international markets. Analysts point to reduced consumer spending, longer device replacement cycles, and growing competition from Chinese manufacturers as major factors behind the decline.

Emerging markets, once a strong growth driver, have also shown signs of saturation.

Rising Costs Add to Strain

At the same time, Samsung is grappling with higher costs linked to components, logistics, and labour. Advanced chipsets, display panels, and camera modules have become more expensive, squeezing margins even as average selling prices face pressure.

Currency fluctuations and supply chain adjustments have further added to operational costs.

Chinese smartphone brands continue to expand aggressively, offering feature-rich devices at competitive prices. Apple, meanwhile, maintains a strong hold on the premium segment, limiting Samsung’s room for pricing flexibility.

Market experts say Samsung is caught between defending its premium lineup and protecting volume sales in the mid-range category.

Samsung has reportedly increased its focus on premium Galaxy models, foldable devices, and artificial intelligence-driven features to differentiate its products. The company is also optimising manufacturing and supply chains to control expenses.

However, analysts caution that these measures may take time to show results.

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