Samsung seems to be making lots of profit every quarter. It is not so far off from what Apple is making. Why less profit and more premium phones for Samsung. Well, maybe same iteration Iphone year after year and are way overpriced and not value for money and Apple has a bigger profit margin. Everywhere in world people are more discernible and they are not biting. Maybe that's why iphone market share has been dropping continuously overseas. In US, due to contract subsidy, the actual price of iphone is masked and is considered cheap at face value (but we know total cost is much higher). Since Apple sells a huge proportion of its phone in the US, all it means is that more American are being fleeced by Apple than people outside of it.
Just consider this. A 32Gb 5S retail (no contract) but looking at the spec:-
32Gb 5s retail price(no contract) > 32Gb Note3
5s 1Gb RAM << Note3 3Gb
5s 8M camera < Note3 13M
5s 4in 640p screen << Note3 5.7in 1080p
5s sensors << Note3 has extra IR Blaster, temperature+humidity, LED notification, dual mic for stereo recording, USB host, HDMI out, SDCard slot, Wacom digitizer for S-Pen
The spin in this article is painful. This isn't Samsung's mainstream phone, but something they've grown from a niche product to a line that will sell 40-50 million additional phones, all at the highest prices Samsung sells for. How exactly is 30 billion in additional annual revenue ever a bad thing, in a category that didn't exist 2 years ago.
The S4 surely has missed expectations, explaining the rushed S5 in Q1 2014. But the Note series has consistently exceeded expectations for its market. The Note 3 is rightfully considered by many to be the best device available on the market today.
evilution wrote: »
The ONLY reason android phones have bigger screens is because they have no other way to compete with Apple. Android have got the idiotic "bigger is better" people in their sights and that's why they don't sell as many, luckily more people have sense.
People who say "I'd buy an iPhone if it had a bigger screen" have no intention of buying an iPhone. If the iPhone was suddenly available in every 0.1" increment up to 28", they would still want a bigger screen or come up with some other crap reason why they wouldn't buy one.
Phones should be 1 handed devices.
Considering a phone spends more time in your pocket, would you rather that it fitted and not have to get clown pockets and also be restricted when you sit down.
Samsung sold 20 million S4 in the first two months of sales. It took Samsung another 4 months to sell another 20 million S4. Notice that sales has already halved . They went from 10 million a month to 5 million a month, in 6 months. And you think that Samsung will sell another 40 million S4 in the next 6 months. I got news for you, sales is not going to increase for an old phone. Specially after the iPhone 5s came out. Not even Apple can sell as many of the same model iPhones in the following 3 months than in the first 3 months after it was released. Samsung won't be see a spike in sales until the Galaxy 5 (or what ever). (Though they'll see a small seasonal spike for Xmas.) Samsung S4 sales of more than 15 million in three months is history as of July 2013.
You are just speculating isnt it? You have no idea how many S4 will sell next 6 months (which corresponds to peak in Western countries - Oct-Dec and in Asia - Jan-Mar). And Jan-Mar 2014 is when S4 will be heavily discounted (in anticipation of S5) which can result in a big spike. We just have to wait a few more weeks before we know how well S4 did in the Oct-Dec 2013 quarter. Even if it is at 15mil per quarter, that will still make S4 sales at 70mil in a year. Add the Note2/3 sales we are looking at more than 100mil yearly for these 2 phones alone. Compared this to Apple yearly 150mil total phone (out of which 75mil are iphone5), it is still an indisputable fact that Samsung sells more high end phones than Apple.
As total smartphone sales for samsung is projected to be 300mil this year, it seems that the proportion of high end phones is more likely to be 30-35% range instead of the 20% as given in OP. This is not as high as Apple 50% but let's see how well 5s will be selling. Considering that Apple volume growth is below market average (whereas Samsung is above), can the 5s helps win back market share? I doubt so.
Well, DED, you comment on otherwise interesting and good article is a bit of a stretch. The rest of Samscrap premium phones (90% according to your figures) are 5", being still pretty larger than 4" iPhone and still not phablet size, so I just don't agree the poor phablet sales has anything to do with Apple not making larger screen iPhones. Yet.
I learned less than a year ago, we just have to start listening to TC, not just hearing him talking. He clearly said market is interested in larger size and Apple understands that, but is also not willing to sacrifice too much trade-offs that come with it.
Larger screen iPhone is the fact. It's just the matter of time. And when Apple releases such phone it will be a blast, because it will be done properly from hardware to SDK, which is almost ready to support different resolutions anyway. Actually, I wouldn't be surprised if such phone would be introduced on WWDC 2014 together with new version of iOS.
zerobim08 wrote: »
...when S4 will be heavily discounted (in anticipation of S5) which can result in a big spike.
I don't want to get into the utility aspect of the device (if I did, I can highlight many iOS shortcomings as well compared to Android).
All I am saying is that in fact, it costs more (i.e. production cost) to make the Note3 than 5s. Apple makes something like 40% gross margin whereas Samsung is around 25%. If you like to feed Apple profit, go ahead.
As a consumer, I welcome it. Isnt that gadget business cycle. When a new model is on the horizon, current model will be discounted.
ksec wrote: »
Well, but you cant deny that there is a HUGE market waiting for a bigger screen iPhone.
Because While the Note 3 may not be selling that well. Most other Android Phone still have 4.3 - 5" Screen Size.
Apple would need to take away the Bezel in order to create a Phone that has larger screen while still works with one hand.
Stop trying to do math here and just run with whatever sounds best for Apple
Although if you carry the author's own math and logic forward, in this very article he has proven that the iPhone 5s/5c are wildly unpopular failures.
He states Apple sold 9 million 5s/5c models in a weekend. He also states that a total of 150 million iPhones were sold in a year.
Do the math! 9 million only accounts for 6% of Apples annual sales of 150 million!!!! This debunks the common myth that that iPhone 5s is quite popular!
So to show apple in poor light just for the heck of it you would go to any lengths...? You compare the launch weekend sales to yearly sales to prove the 5S and 5C are failures...!
Truly mind boggling...
I'm speculating? And you want to use the sales numbers of from the first 6 months of the Galaxy S4 to come up with a sales figure for a whole year. The sales numbers already don't come close to that. Samsung originally said that they will sell more than 100 million S4 in a year. That comes to an average of about 8.5 Million a month. In the first 6 months that average had already dropped to about 6.5 million a month. (40 million S4 sold in 6 months) In August of 2013, the six month point, they sold only 5 million S4. I doubt that in the next 3 month after, that they even have 15 million in S4 sales. No wonder they had to come out and annouce that the more than 100 million number now includes all their high end smart phones, not just the S4.
I willing to bet Samsung makes about the same 40% margin on their high end Galaxy line as Apple makes on their iPhones. What brings down Samsung margin is that they sell a lot and a lot and a lot (did I mention a lot?) of not so smart phones with margins well below 25%. Where as Apple don't play that game.
You're pretty far off.
what the f you talking about?
- 30 to 35 million people are paying high-end price every 3 months to buy a S3/4 or or Note2/3.
Yeah, maybe you are one of those who like to flaunt your phone. If you used this yardstick as , then yeah, iphone is the most popular.
Come out of under the rock to Asia (and the rest of the world) and take a look
Apple 40% margin is for their entire range, isnt it? Maybe if you just take 5/5s margin, it would be much higher than 40%.
And Jan-Mar 2014 is when S4 will be heavily discounted (in anticipation of S5) which can result in a big spike.
If they're going to heavily discount the S4 before they release the S5, they better be sure that the S5 is worth that much more buying. Because if it isn't, then why would anyone pay that much more for it. All a heavy discount will do is cannibalize other phone sales, either the cheaper phones or the new one coming out. And Samsung sells phones in all price ranges.
And if you actually believe that Samsung margin in only 25%, then how much can they really discount it and you still call it a heavy discount, without losing money on every sale. But on the other hand, if they have to get rid of a ton of excess inventory due to way slower than expected sales, then I guess it might be the best thing to do. Even if it's going to eat into the new S5 sales.
Well, I'm not sure whether the 100mil S4 projection came from Samsung or analysts. But 80mil is the current projection which I have used in my calculations. You said in Aug 2013 it sold 5mil but that's a low month. It is not too far-fetched that the 5mil can be maintained or improved over the peak months from from Nov - Feb.
Looking at Samsung which reported sales volume/profit has been increasing y-o-y and q-o-q, it just common sense that the QUANTITY of high-end phones sales would also increase in tandem (with some variance). Otherwise it is just illogical that in one quarter Samsung sold high proportion of high-ends but suddenly in the next quarter the volume drops dramatically even though the overall volume has increased.