How does a mobile phone make a $2 billion profit?
On a sunny afternoon in the sprawling capital, Kuala Lumpur, the company that makes the world’s biggest phone called itself to the press conference of its newest handset.
It was called to announce that it had sold more than 2 billion devices worldwide in the past year.
That was the company’s first full day of sales.
The announcement came as a surprise.
The world’s largest phone maker, Samsung, was widely expected to announce a big new product, a tablet with a 5-inch display and a price tag of more than $10,000.
But its sales of mobile phones have been falling for years.
In fact, Samsung’s share price has dropped by more than 60 per cent since the beginning of the year.
In October, analysts at Goldman Sachs put its share price at around $12.25.
The company is now trying to regain its place as the world leader in mobile phone sales.
But Samsung is now facing some competition from a company called Togel.
It is a subsidiary of Taiwanese smartphone maker Hon Hai Precision Industry Co Ltd, and it is a leader in developing smartphones with touchscreens.
It has a market share of nearly two-thirds in the mobile phone market.
The first smartphone from Togel is called the Togel 2.
It costs $9,999 and features a 1.8-inch screen, a fingerprint scanner and a capacitive touchpad.
Samsung said it had a 100 per cent market share for its phones.
It said it sold 3.3 million devices in its first year of operation.
It made a profit of $1.15 billion, or $0.05 per share.
The price tag was not disclosed.
“Togel 2 is the best value and best value product for the market,” said Timo Häyhänen, chief executive of Togel, in a press conference after the announcement.
“This is the biggest breakthrough in our entire history, and we are really proud of it.”
The company has been in the smartphone business since 2003.
The Togel smartphone is made by a group of companies that include the French mobile phone maker Le Mobile, which is owned by Samsung, and a consortium of Chinese phone makers called Qiyi, which also includes Samsung.
The smartphone market has been dominated by Samsung and its rivals, such as HTC and Motorola.
Samsung has become the world market leader by far, but it is also facing competition from new companies that offer devices at a much lower price point.
“There are three or four companies in the world that can offer better quality phones than Samsung,” said Michael Johnson, chief operating officer of Samsung Electronics Co Ltd.
“We see the market as being more saturated.”
The key problem is that there are very few companies that can deliver the price point that Samsung has achieved.
For example, there are only a handful of smartphone manufacturers that make smartphones with a 3.5-inch (1066 x 768 pixels) screen.
There are no 3.6-inch phones that can compete with Samsung’s products.
Mr Johnson said that there were a lot of phones on the market that could have been better.
The problem is they have been made in a different way and that is making them less affordable for consumers, he said.
Samsung is not the only company to have problems.
There have been many controversies surrounding its smartphones.
It introduced a number of new models, including its Galaxy S II, and also introduced its Galaxy Tab, a bigger version of its previous handset.
The new phones had to be discontinued after only six months on sale because they were not as good as the original.
Samsung also tried to push out its own devices, such in the mid-2000s as the Galaxy Note and Galaxy Tab II.
They failed to attract enough consumers to justify their price tags.
And in 2010, the South Korean giant tried to rebrand itself as LG, which would give it greater market share in the lucrative global smartphone market.
But the move backfired, as the smartphone market grew rapidly.
“If we want to maintain our position as the leader, we have to change the way we manufacture products,” Mr Johnson told reporters after the unveiling of the Toel 2.
He said that Togel had already introduced its own phones and that its own customers would be better served by its products.
He added that the company was also working on the introduction of new products.
“It is not enough just to have a new product and then try to bring it to the market.
We have to put in a new approach.”
It has been a difficult year for Samsung in the global smartphone and tablet market.
In November, it announced that it was going to cut its workforce by 3,000 people, mostly in the US, because of the global economic downturn.
In January, the firm also announced that a new smartphone would be launched by the company.
It sold a few thousand of those phones.
And the company also suffered