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Samsung shipped 2x as many phones as Apple, earned half as much

post #1 of 61
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While Samsung itself does not report unit shipments, estimates from a closely positioned marketing company indicate that it shipped 89 million phones in the March quarter, nearly 20 million more than the year ago quarter, despite earning less money this year, and half as much as Apple.

Samsung logo


Strategy Analytics reported that Samsung increased its phone shipments from 69.4 million units in the year ago quarter to 89 million, but Samsung itself just reported earning 3.3 percent lower profits for the quarter compared to the previous year.

Samsung Electronics blamed disappointing sales of both flat screen displays and high end smartphones for its dip in operating profits, which totaled 8.5 trillion South Korean won ($8.2 billion). The company also reported a favorable increase in profits from its System LSI chip foundry.

Apple is a major customer of Samsung Electronics's Device Solutions (for components including displays and fabrication of Apple's chips), and a primary competitor to Samsung's Mobile group, which builds phones, tablets, netbooks and PCs.

Samsung Mobile reported profits of 6.43 trillion won ($6.2 billion), down 1.2 percent from 6.51 trillion won in profit a year earlier. For the same quarter, Apple reported more than twice as much operating income, $13.6 billion, an increase of 8.24 percent over the year ago quarter.

Compared to the entirety of Samsung Electronics, Apple reported holding 2.8 times as much cash, while its cash flow from operations was $13.5 billion, compared to 2.21 trillion won ($11.8 billion) for all of Samsung Electronics.

Warnings and subterfuge in 2013



Samsung has been warning investors for more than a year of fading profits and increased competition. In January 2013, the company stated, "the furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition, compounded by a slew of new products."

Throughout the year, Samsung continued to note to its investors that sales of its premium smartphone were flat and that its shipment volume growth was "led by increased sales of mass-market models," phones like the Galaxy Y--a 3G-only Android 2.x phone with an ARMv6 chip, 290MB of RAM, a 2MP camera and a 3 inch, 240x320 screen--specifications inferior to Apple's obsolete iPhone 3G from 2008.

Galaxy Y


Last July, Strategy Analytics issued a widely syndicated press release that claimed Samsung had overtaken Apple in mobile profits, a claim that was simply not accurate.

Despite Samsung's own warnings of flat premium phone sales in its earning reports, Strategy Analytics Executive Director Neil Mawston continued to issue statements which suggested that nothing was wrong, reports that were broadly syndicated by sites like CNET.

"While shipments of the flagship Galaxy S4 model softened," Mawston stated in October, "solid demand for the new Note 3 phablet and for mass-market devices like the Galaxy Y helped to lift Samsung's volumes."

A focus on volume



Six months ago, Strategy Analytics was similarly focusing attention on market share numbers, noting that "Apple grew just 26 percent annually during Q3 2013, which is around half the overall smartphone industry average of 45 percent," effectively equating Samsung's "mass market" Galaxy Y with Apple's iPhone 5.

Today, the firm again drew exclusive attention to volume and market share, stating that "Apple grew a below-average 17 percent annually and shipped 43.7 million iPhones worldwide for 15 percent marketshare in Q1 2014, falling from the 17 percent level recorded during Q1 2013. Apple remains strong in the premium smartphone segment, but a lack of presence in the entry-level category continues to cost it lost volumes in fast-growing emerging markets such as Latin America."

SA Q1 2014


However, according to Strategy Analytics' own estimates, Apple's addition of 6.3 million new iPhone sales in the March quarter was better than both Huawei (3.4 million new sales) and Lenovo (4.9 million new sales), the only other companies the firm detailed shipment numbers for in its report.

Strategy Analytics' latest press release makes no mention of profits.
post #2 of 61
I'd be worried if Samsung represented a compelling ecosystem.

Amazon taking a loss or lower profits... but gaining CC# and amazon prime subscription memberships... capturing eyeballs and wallets.

Samsung is a purchase cycle or 2 away from irrelevance. 1.5,3,7 years (phones, tablets/laptops, TVs/monitors). Their only compelling mass market (less tech geek) value is screen size vs price as far as I can tell... Profits in this model become a race to the bottom.

Apple isn't playing that game.
post #3 of 61
Samsung - Buy one get one free. Ya. Twice as many Samsung phones shipped as Apple SOLD. Makes sense.
post #4 of 61
And Samsung has a hundred times more Korean workers than does Apple. Pure mathholery.
post #5 of 61

Fool me once - shame on me. Fool me twice no phone from Samsung again. 

post #6 of 61
Quote:
Originally Posted by Landcruiser View Post

Samsung - Buy one get one free. Ya. Twice as many Samsung phones shipped as Apple SOLD. Makes sense.
yep just saw a Verizon commercial last weekend for the GS5 where they were offering BYGO. And another carrier (might have been AT&T) offering a free Galaxy tab with the purchase of a GS5.
post #7 of 61
Quote:
Originally Posted by TheOtherGeoff View Post

I'd be worried if Samsung represented a compelling ecosystem.

Amazon taking a loss or lower profits... but gaining CC# and amazon prime subscription memberships... capturing eyeballs and wallets.

Samsung is a purchase cycle or 2 away from irrelevance. 1.5,3,7 years (phones, tablets/laptops, TVs/monitors). Their only compelling mass market (less tech geek) value is screen size vs price as far as I can tell... Profits in this model become a race to the bottom.

Apple isn't playing that game.

Exactly, Scamsung should think about moving into Mattel type toys soon. I can see a massive way of selling their unsold crap that way.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #8 of 61

Samsung = Garbage

One thought he was invincible... the other thought he could fly.

They were both wrong.

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One thought he was invincible... the other thought he could fly.

They were both wrong.

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post #9 of 61
Quote:
Originally Posted by Stef View Post

And Samsung has a hundred times more Korean workers than does Apple. Pure mathholery.

i don't know how samsung does it. but creating the manufacturing process for extra 40million devices is not an easy job. in term of manufactures' efficiency, quality control, and build integrity, it is almost impossible to make it. further, things are not that simple if samsung keeps opening new manufacturing factories. at certain level, just adding new plants and hiring new workers might not help.

post #10 of 61

This headline sums up the Samsung - Apple relationship completely. Of course pure profits are more important than pure marketshare but there is a tipping point. At some point (under 5% for PCs) developers and industry allegiance begin to pull away completely from your ecosystem as Apple found in the mid-nineties. I never want to be an iOS user looking over the fence and seeing so many more apps and accessories available for Android just as they looked at iOS a few years ago.

 

iOS has a long way to go before developers begin to look elsewhere but there are some very early signs of developers now embracing Android and iOS together.

post #11 of 61
Doubt Apple will ever compete for low cost low margin phone. Let Samsung and Amazon fight for those dwindling dollars.
post #12 of 61

Silver is Silver.

White Gold is not even close.  

post #13 of 61
Quote:
Originally Posted by wigby View Post
 

This headline sums up the Samsung - Apple relationship completely. Of course pure profits are more important than pure marketshare but there is a tipping point. At some point (under 5% for PCs) developers and industry allegiance begin to pull away completely from your ecosystem as Apple found in the mid-nineties. I never want to be an iOS user looking over the fence and seeing so many more apps and accessories available for Android just as they looked at iOS a few years ago.

 

iOS has a long way to go before developers begin to look elsewhere but there are some very early signs of developers now embracing Android and iOS together.

 

Speaking in pure #s, Android is obviously a majority, yet developers still overhwelmingly favor iOS in terms of app development. There's nothing that indicates this will change anytime soon, since the percentage of Android users who own capable devices, and actually are willing to purchase apps is much, much smaller than the numbers suggest. Meanwhile, every single iPhone owner is a lucrative consumer. 

post #14 of 61

Even though Apple ships millions of phones, quality takes precedence over quantity. Apple makes a quality product, and that product just happens to ship in the tens of millions, because it's that damn good.

 

It's the exact opposite with Android. Quantity takes precedence over quality. Most Android manufacturers make a shit product, and they just try to unload their junk to ignorant customers, very often in BOGOF deals. They're literally giving their crap away. Is it any wonder that so many of them are struggling? 

post #15 of 61
I'm looking forward to when Samsung will sell 4X as many phones and earn 1/4 the profit that Apple makes.
post #16 of 61
Quote:
Originally Posted by wigby View Post
 

This headline sums up the Samsung - Apple relationship completely. Of course pure profits are more important than pure marketshare but there is a tipping point. At some point (under 5% for PCs) developers and industry allegiance begin to pull away completely from your ecosystem as Apple found in the mid-nineties. I never want to be an iOS user looking over the fence and seeing so many more apps and accessories available for Android just as they looked at iOS a few years ago.

 

iOS has a long way to go before developers begin to look elsewhere but there are some very early signs of developers now embracing Android and iOS together.


Obviously, if Apple stopped innovating and raising the bar, your statement could be accurate.  Apple doesn't stop at all.  What they will be in a year may very well be in a much better position than they are in now.  Sure, Android is getting better, but the majority of Android devices are still running an old OS on junk hardware.  Over time, they will be replaced with newer hardware, but I still think Android's achilles heel will be the fragmentation and big gaps in OS releases.

And then of course, for now (and in foreseeable future) the money for developers is still in iOS devices.  

post #17 of 61
A couple years ago Samsung pulled a Google - change their accounting method. In one quarter their feature phone sales dropped while their smartphone sales climbed. They didn't suddenly sell half as many feature phones while doubling smartphone sakes in one quarter - they just changed the definition of a "smartphone".

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post #18 of 61
Quote:
Samsung shipped 2x more phones than Apple

Samsung shipped 1x more, or 2x as many, phones as Apple, not 2x more, as he said. He should fix this.

Quote:
 
Samsung shipped 2x as many phones as Apple

Thank you for fixing your mistake, Daniel.


Edited by DCJ001 - 4/29/14 at 11:27am
post #19 of 61
Quote:
Originally Posted by DCJ001 View Post
 

The author of this article is illiterate. Samsung shipped 1x more, or 2x as many, phones as Apple, not 2x more, as he said. He should fix this.

 

Well said!   If it really had sold out 2x more... then Sammy is more shit.

If it had really sold out only 1x MORE as you pointed out... still Sammy is shit.

post #20 of 61
Quote:
Originally Posted by EricTheHalfBee View Post

They didn't suddenly sell half as many feature phones while doubling smartphone sakes in one quarter - they just changed the definition of a "smartphone".

...or today's feature phones are actually as powerful as (for example) iPhone 3G, so it is correct to call them "smartphone".

In a year or two all cell phones will be smartphones... we definetely need more categories. 1cool.gif
post #21 of 61
Well you gotta spend money to make money, and in samsungs case you gotta spend a lot of money to make money. It's what happens when your devices aren't compelling on their own without a media blitz.
post #22 of 61

Considering Samsung has been GIVING ONE AWAY FOR EVERY ONE THEY SELL....how many did they really Sell vs. Ship?

post #23 of 61

Frankly, it is more likely iOS will see more and better competition from Microsoft in the coming years. And, Samsung will be moving away from Android and to their own Tizen, where they can have vertical control. Where will Amazon be?

 

A lot of Apple haters are now looking to Amazon, hoping it will destroy Apple. Never know. If the US government decides to again support the Amazon monopoly like they did regarding ebooks, then Apple may have problems. 

post #24 of 61
Quote:
Originally Posted by anakin1992 View Post

i don't know how samsung does it. but creating the manufacturing process for extra 40million devices is not an easy job. in term of manufactures' efficiency, quality control, and build integrity, it is almost impossible to make it. further, things are not that simple if samsung keeps opening new manufacturing factories. at certain level, just adding new plants and hiring new workers might not help.

"Quality control" or lack thereof just about sums that up.
Quote:
Originally Posted by wigby View Post

This headline sums up the Samsung - Apple relationship completely. Of course pure profits are more important than pure marketshare but there is a tipping point. At some point (under 5% for PCs) developers and industry allegiance begin to pull away completely from your ecosystem as Apple found in the mid-nineties. I never want to be an iOS user looking over the fence and seeing so many more apps and accessories available for Android just as they looked at iOS a few years ago.

iOS has a long way to go before developers begin to look elsewhere but there are some very early signs of developers now embracing Android and iOS together.

This is not the mid nineties. Apple is still selling more iOS devices each qtr (yoy). Devs are making more money on iOS than in Android. iOS users also spend more $$$. A larger % of iOS user spend money.
post #25 of 61
Quote:
Originally Posted by Landcruiser View Post

Samsung - Buy one get one free. Ya. Twice as many Samsung phones shipped as Apple SOLD. Makes sense.

yep and every company before them that allowed the Service provider to do the BOGO, were on the quick slide to non-existence. A few names come to mind, Motorola, RIM, Nokia... It is only a mater of time. This is how service provider back the cell phone companies into a corner.

post #26 of 61
Android is good for Google, for Android phone manufacturers it's a race to the bottom.

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GOA

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Proud AAPL stock owner.

 

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post #27 of 61
As soon as I saw Strategy Analytics, I quit reading
post #28 of 61

From a long term view, this is not good for Apple.

When you lose market share, eventually you lose. 

post #29 of 61

Ugh, Strategy Analytics ... the same outfit that reported 2 million Galaxy Tabs sold at launch, when in fact Samsung had only sold 1 million units for the entire year. And after DED rightfully ripped Strategy Analytics for basically pulling a bunch of sales figures out of thin air, he now cites them as the source for this article? Some of us pay attention to the credibility of these analysts, and it doesn't make DED's case here considering how thoroughly he deconstructed Strategy Analytics' credibility to begin with.


Edited by Woochifer - 4/29/14 at 1:06pm
post #30 of 61
Quote:
Originally Posted by Woochifer View Post
 

Ugh, Strategy Analytics ... the same outfit that reported 2 million Galaxy Tabs sold at launch, when in fact Samsung had only sold 1 million units for the entire year. And after DED rightfully ripped Strategy Analytics for basically pulling a bunch of sales figures out of thin air, he now cites them as the source for this article? Some of us pay attention to the credibility of these analysts, and it doesn't make DED's case here considering how thoroughly he deconstructed Strategy Analytics' credibility to begin with.

 

It was Samsung that first reported having shipped 2M Tabs in 2010. It didn't sell even 1 M.

 

Strategy Analytics numbers are certainly only "estimates," but the rest of the tech media is publishing them along with SA's incredibly insane interpretation. This is presenting the other side of the story. It really doesn't matter how many phones Samsung sold if it made less money than a year ago, and half as much as Apple.

 

In fact, the more phones SA reports that Samsung sold, the more incompetent both of them look. 

post #31 of 61
Quote:
Originally Posted by Slurpy View Post
 

 

Speaking in pure #s, Android is obviously a majority, yet developers still overhwelmingly favor iOS in terms of app development. There's nothing that indicates this will change anytime soon, since the percentage of Android users who own capable devices, [b]and actually are willing to purchase apps is much, much smaller than the numbers suggest.[/b] Meanwhile, every single iPhone owner is a lucrative consumer. 

 

That's the key point.  Almost every metric shows the iOS users spend way more money than Android users.  And as sick as Android fans are of hearing it, the fact is that a huge number of those Android phones out there are really feature phones (that Galaxy Y being an excellent example).

post #32 of 61
Quote:
Originally Posted by bayTed View Post

From a long term view, this is not good for Apple.
When you lose market share, eventually you lose. 

Apple doesn't play the marketshare game in such a way. Plus a lot of the market share of Android are for developing nations or less wealthy individuals. The Android model is almost destined to always earn less than Apple because it takes into account the rest of the world.

If Android didn't exist I doubt the proliferation of smartphones would be as wide but that width doesn't always translate to income.

Apple doesn't need market share to win. They are already winning.
post #33 of 61
Quote:
Originally Posted by AaronJ View Post

That's the key point.  Almost every metric shows the iOS users spend way more money than Android users.  And as sick as Android fans are of hearing it, the fact is that a huge number of those Android phones out there are really feature phones (that Galaxy Y being an excellent example).

Still a smartphone. Just not a powerhouse.
post #34 of 61
Quote:
Originally Posted by bayTed View Post
 

From a long term view, this is not good for Apple.

When you lose market share, eventually you lose. 

 

What's Mercedes-Benz' market share?  What's Tiffany's market share?  What's Omega's market share?

post #35 of 61
Quote:
Originally Posted by AnAmazingThing View Post


Still a smartphone. Just not a powerhouse.

 

It's only a smartphone in the technical sense.  It's not going to be able to run all sorts of apps, for instance.

 

And let's face it: If someone is buying that phone, he's buying it because it's cheap as hell.  That sort of purchaser isn't going to spend a lot of money apps, or buying music or movies, or anything else for that matter.

post #36 of 61
Quote:
Originally Posted by AaronJ View Post
 

 

It's only a smartphone in the technical sense.  It's not going to be able to run all sorts of apps, for instance.

 

And let's face it: If someone is buying that phone, he's buying it because it's cheap as hell.  That sort of purchaser isn't going to spend a lot of money apps, or buying music or movies, or anything else for that matter.

 It's a smartphone in the actual sense. Where does the threshold between "smartphone but not really smartphone" and "smartphone" end?

 

Just because it didn't cost $500-700 and can't run 10 apps at once doesn't mean it isn't a smartphone.

post #37 of 61

I don’t care how many phones Samsung shipped. I don’t use Samsung products (except for a refrigerator.) I don’t care if Android market share dwarfs that of iOS. I don’t have any Android devices. I only have one question. Analysts, haters, critics, pundits, soothsayers all squawk about market share being the death of Apple, a repeat of the Microsoft PC wars. So… is it true or not? Will developers eventually move away from iOS because of shrinking market share or not? Will fewer and fewer apps be available for iOS or not?

post #38 of 61
Quote:
Originally Posted by lkrupp View Post

I don’t care how many phones Samsung shipped. I don’t use Samsung products (except for a refrigerator.) I don’t care if Android market share dwarfs that of iOS. I don’t have any Android devices. I only have one question. Analysts, haters, critics, pundits, soothsayers all squawk about market share being the death of Apple, a repeat of the Microsoft PC wars. So… is it true or not? Will developers eventually move away from iOS because of shrinking market share or not? Will fewer and fewer apps be available for iOS or not?

A loud minority squawks about marketshare. Most media praises Apple expectedly and others don't really care as long as shit works properly.
post #39 of 61
Quote:
Originally Posted by Rogifan View Post

yep just saw a Verizon commercial last weekend for the GS5 where they were offering BYGO. And another carrier (might have been AT&T) offering a free Galaxy tab with the purchase of a GS5.
You do understand that even though they are bogo, Samsung is only reducing price by $100 with benefit of selling two phones instead of one. Its nice marketing gimmick.
For eg. If S5 price is $650 and carrier sells for $200 with subsidy, then that means Samsung is getting $650 for first phone and $450 for second free phone. Or $100 less per phone on average for total price of $1100 instead of $1300.
Its like saying that they sell phone for the price of iPhone 5C.
But on other hand they lock two customers to their copycat phone instead of one.
post #40 of 61

Is it any surprise that they earned less when they shipped more items but didn't sell them?

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