24 April 2014

East Africa: Samsung Says Sales in East Africa Still High

Samsung has said its electronic business in East Africa remains strong despite projecting a drop in global profits for the second quarter in a row. Early this month the company announced it expects to make an operating profit of $7.9bn (Sh686.43 billion) for the January-to-March quarter, down 4 per cent from the same period last year.

This follows a 6 per cent decline in operating profit in the previous quarter. However the firm's East Africa manager, Robert Ngeru said stiff competition, the firm still commands over 50 per cent market share for electronic business in the region.

"Competition is good, it enables you to realise what you are doing wrong so that you can perfect the business," Ngeru said. He said they are expecting to push their market share beyond the current mark due to the advantage of premium range products such as the Samsung Galaxy S5 smartphone recently launched in Kenya.

The dip was attributed to falling prices of devices driven by Far East rivals such as Huawei, Lenovo, and ZTE. Ngeru was speaking yesterday during the graduation of 98 students from the Samsung Electronics Engineering Academy, in Nairobi.

He said the academy selects students from local universities who are trained on electronic engineering. "We need people to service and repair electronic gadgets since people are continuously buying electronics but don't know where to take them for after sale services," he said.

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