Samsung reports second quarterly drop in profits, blames premium phone sales

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  • Reply 61 of 74
    jungmarkjungmark Posts: 6,927member
    What I don't get is the people who only want a single company to exist, there is nothing wrong with having options. When it comes to mobile, for me its Android. After they announced 64 bit processor, it was funny to see everyone scramble to catch up(and still trying). Apple rarely, if ever, has to play catch up.
    On the subject of the 64 bit though; no doubt it add some speed and performance, isn't it only beneficial for graphically intense applications? correct me if im wrong

    Who wants only one company? Is that Google's talking points?

    I wouldn't mind seeing Nokia or HTC survive with Apple.
    frood wrote: »
    I think 'sales growth' is slowing.  Profit growth for both Samsung and Apple, long run, is already flat to negative.  Apple sold a record number of devices in 2013, but made considerably less profit doing it.  I think Apple is doing extremely well do maintain flat or even slightly profits for 2014- I don't believe they'll get back to 2012 profitability in 2014.  Samsung I believe is in trouble without a really good way to paddle out.  Number of sales will decline, and their margins will decline.  China is attacking them from the bottom, and Apple is applying pressure with larger phones.  Tizen might be a novelty, but it is going to have a WP7esque battle getting started.

    Apple on the other hand will face lowering sales in the long run, because like PC's in the 80's people will get to a point they just don't need to upgrade every year.  I think the exception is going to be 2015 (mostly because Q4 of 2014 falls into Apple's fiscal 2015).  I think the larger screen iPhones are going to be an absolute cash cow for Apple.  Apple can raise the price substantially and iPhone users will gladly pay.  For those that won't so 'gladly' pay- they'll pay anyway.   Most are already too heavily invested in the ecosystem to switch, and wouldn't want to even without that.

    I think Apple phones themselves are great, but from the financial side the only thing that could thwart the above are how subsidies play out.  I think Apple will still have enough 'user clout' to squeeze another round of subsidies out of carriers- and could even get some to up their subsidies.  The threat is if there is even one holdout (T-mobile?), that holdout will be able to offer plans much less expensive than those that have to offer subsidies. If that delta gets big enough, people buying less expensive phones will migrate to the less expensive carriers and the whole subsidy system relies on the people buying cheap phones to pay the expensive plan fees to cover the subsidies.  I don't think this will be the year that happens, but when it does Apple is going to take a substantial financial hit.

    Nope. People are in the mindset to upgrade every two years when their contract runs out. That's not going to change.

    As for subsidies, I don't think tmobile is doing them anymore. However they offer a payment plan if the lump cost is too high. Likewise for the other carriers if they choose that route.

    But why would that affect only Apple?
  • Reply 62 of 74
    dasanman69dasanman69 Posts: 13,002member
    jungmark wrote: »
    Who wants only one company?
    I wouldn't mind seeing Nokia or HTC survive with Apple.

    I guess you don't pay attention to the comments on here. Plenty would be content if Apple was the only company. Nokia is gone already, and even licensing deals with Apple have proven fruitless for HTC.
  • Reply 63 of 74
    jungmarkjungmark Posts: 6,927member
    dasanman69 wrote: »
    I guess you don't pay attention to the comments on here. Plenty would be content if Apple was the only company. Nokia is gone already, and even licensing deals with Apple have proven fruitless for HTC.

    I think what it is that no one wants a cheating, slimy company like Sammy to survive. Or a stolen OS for that matter. :)
  • Reply 64 of 74
    dasanman69dasanman69 Posts: 13,002member
    jungmark wrote: »
    I think what it is that no one wants a cheating, slimy company like Sammy to survive. Or a stolen OS for that matter. :)

    Be for real, if it wasn't Samsung they'd be picking on another company, stolen OS of not. Anything nonApple gets instantly ridiculed
  • Reply 65 of 74
    froodfrood Posts: 771member
    Quote:

    Originally Posted by jungmark View Post



    As for subsidies, I don't think tmobile is doing them anymore. However they offer a payment plan if the lump cost is too high. Likewise for the other carriers if they choose that route.



    But why would that affect only Apple?

     

    It wouldn't affect only Apple.  It would affect all high end pricey phones which receive heavy subsidies.  Samsung's high end phones would be equally clobbered.  When faced with being an iPhone or S5 for $700 vs a phone a tier less capable for $300, many consumers would go for the less than half price option.  Currently people buy the expensive one because it costs almost the same as the "cheaper" one and regardless of which one they but they are going to pay for it in their expensive cell plans.

     

    Mid tier phones in the $300-400 range would likely see an uptake.  So while Samsung would lose overall, they at least have some icing.  Apple would either have to convince users that paying twice as much is worth it (for many here that's a no-brainer) or be forced to lower their prices to compete.  Same great phones, just a lot less money in Apple's pocket.

  • Reply 66 of 74
    Quote:

    Originally Posted by jungmark View Post





    Who wants only one company? Is that Google's talking points?

    I wouldn't mind seeing Nokia or HTC survive with Apple.

     

    Fanboys Google/Microsoft/Apple/Sony/Samsung

  • Reply 67 of 74
    jungmarkjungmark Posts: 6,927member
    frood wrote: »
    It wouldn't affect only Apple.  It would affect all high end pricey phones which receive heavy subsidies.  Samsung's high end phones would be equally clobbered.  When faced with being an iPhone or S5 for $700 vs a phone a tier less capable for $300, many consumers would go for the less than half price option.  Currently people buy the expensive one because it costs almost the same as the "cheaper" one and regardless of which one they but they are going to pay for it in their expensive cell plans.

    Mid tier phones in the $300-400 range would likely see an uptake.  So while Samsung would lose overall, they at least have some icing.  Apple would either have to convince users that paying twice as much is worth it (for many here that's a no-brainer) or be forced to lower their prices to compete.  Same great phones, just a lot less money in Apple's pocket.

    Like I said, carriers would put folks in a payment plan. Low cost PCs haven't hurt the Mac bottom line.
  • Reply 68 of 74
    Quote:

    Originally Posted by Rogifan View Post





    How do you figure it was a money grab? I had a 3rd gen too and it ran great so I didn't feel cheated. Still got decent money for it when I sold it to upgrade to the Air.

     

    I guess I was expecting a 12 month cycle for the iPad, like most other Apple products. I know now Apple was changing the cycle but at the time I couldn't understand why they just wouldn't have waited the extra 6 months before updating the iPad. They don't seem to have a 12 month cycle with the mac mini, I'm sure they could have pushed it.

     

    It doesn't really matter any more, it's all in the past.

  • Reply 69 of 74
    tallest skiltallest skil Posts: 43,388member
    Originally Posted by jungmark View Post

    Like I said, carriers would put folks in a payment plan. Low cost PCs haven't hurt the Mac bottom line.

     

    We’re already in a payment plan. The subsidy is recouped in the monthly bill. And it’s recouped even if we don’t have one. :grumble:

  • Reply 70 of 74
    heliahelia Posts: 170member
    Quote:

    Originally Posted by GTR View Post

     

     

    It's the killing of the dinosaurs all over again...

     


     

    The first dinosaur was Nokia? Or BB? or Motorola? :p

  • Reply 71 of 74
    helia wrote: »
    The first dinosaur was Nokia? Or BB? or Motorola? :p

    Hopefully the iPhone 6 will inject some new innovation into a slowing market. Not so much a case of extinction but smartphones have reached a plateau?
  • Reply 72 of 74
    reza666reza666 Posts: 7member
    @hittrj01

    LOL just my thought they are making BILLIONS and this article makes it sound like a bad news :)

    By the way i move from both Android and iOS to Windows Phone 8.1 (Nokia 1520) and i just love it.
    Funny no one seem to think there are other options beside the 2 big ones :)
  • Reply 73 of 74
    hill60hill60 Posts: 6,992member
    Quote:
    Originally Posted by reza666 View Post



    @hittrj01



    LOL just my thought they are making BILLIONS and this article makes it sound like a bad news image



    By the way i move from both Android and iOS to Windows Phone 8.1 (Nokia 1520) and i just love it.

    Funny no one seem to think there are other options beside the 2 big ones image

     

    They are not bad...

     

    ...for old people.

     

    Big screen, customise the tiles, big phone, SMS and photo tiles and that's most of the grannies covered.

     

    I sell a lot that way.

  • Reply 74 of 74
    reza666reza666 Posts: 7member
    Quote:

    Originally Posted by hill60 View Post

     

     

    They are not bad...

     

    ...for old people.

     

    Big screen, customise the tiles, big phone, SMS and photo tiles and that's most of the grannies covered.

     

    I sell a lot that way.




    Or people who want to watch movies, read books and relax their eyes. Many friends are moving from their iPhones for the small screen.

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