Dive Brief:
- In 2013, Samsung devoted 5.3% ($11.3 billion) of its global revenue to marketing.
- Comparatively, competitors spent a fraction: Xiaomi only used 1% of its revenue, and Apple shelled out less than one-tenth the amount Samsung did.
- Declining sales and continued marketing spending have squeezed Samsung's revenues, with operating income down 24% for the company's third straight quarterly decline.
Dive Insight:
Samsung is doing something right, as it still holds the No. 1 smartphone spot — but at what cost? If that spot is being held by massive spending and it's not helping revenues, it may not always be best to be No. 1.