Samsung earnings disappoint as company blames competition in smartphone space

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Comments

  • Reply 21 of 103
    SpamSandwichSpamSandwich Posts: 33,408member
    Hold off on releasing the iPhone 6 for a year and Samsung will go bankrupt because they have nothing to copy.
  • Reply 22 of 103
    MacProMacPro Posts: 19,308member
    macxpress wrote: »

    And when you ONLY run commercials bashing the iPhone instead of trying to convince people you're phone is better because of feature A, B, and C then people get disinterested very fast. How many iOS device commercials do you see bashing what others don't do vs what the device actually does and why its good. 

    Of course...that would mean they'd have to do their own R&D and create some actual features instead of playing the wait and see what Apple does game. 

    There is all that ... plus once you use one the horrible truth sinks in ... I bet many iPhone sales (and a few iPads sales) are switchers from Android crap. I say' a few 'iPads sales' as the sale of Android tablets is hardly registering on the charts (excluding channel stuffing data from Scammy and Gatorguys collection). :D
  • Reply 23 of 103
    MacProMacPro Posts: 19,308member
    The Daily Telegraph in England made some interesting points about this today.  They said that ultimately as smartphones cease to be differentiated by hardware, and they made the point that once, for examples, screens become such high resolution that your eye can't discern an even higher resolution, people will end up buying phones based on:
    1. Familiarity
    2. Price

    Familiarity is a function of the OS, so if you're into iOS, you will continue buying Apple, but if you're into Android, you can easily move from Samsung to someone else, and that someone else can easily be someone with lower price.

    As the market matures, Apple are going to be ever more the only company in the space that makes any profit out of phones.

    Agreed but I'd add that those with no problem dropping Android, many that are higher educated and better off will be going iOS, i.e. higher priced.
  • Reply 24 of 103
    poochpooch Posts: 768member
    samsung down 4.46% after the close. are they going to drag down aapl for the day? aapl is presently down 2.74%.
  • Reply 25 of 103
    gatorguygatorguy Posts: 22,896member
    So your 20% figure is just market share including all the crap and therefore pointless and irrelevant.

    On the contrary it's VERY relevant if Apple has 20% of the EU market share. Yes I'll almost guarantee Google is rooting for Apple to make an even better showing in Europe than they do now. It keeps Almunia and his soon-to-be-replacement off their back.
  • Reply 26 of 103
    Quote:
    Originally Posted by SpamSandwich View Post



    Hold off on releasing the iPhone 6 for a year and Samsung will go bankrupt because they have nothing to copy.

     

    $6 billion in profit is not exactly "going bankrupt", I think.  Besides, healthy competition is good for both Samsung and Apple.  If only Samsung would shift it's business model from imitation to innovation!

     

    Seinfeld, 1989

     

    Samsung, 1993

  • Reply 27 of 103
    cnocbuicnocbui Posts: 3,613member

    I think the main reason for this result is that Samsung miscalculated badly with the S5.  It was bland and boring in appearance and just too much like the S4.  They were to complacent and too conservative. They goofed with staying with plastics for the body.  Pretty much every model in the entire Nokia range has a more pleasing design and most of it's Android competitors look better.

     

    The upper echelons at Samsung seem to lack courage and vision.  If they don't do something about that they are going to sink way back in sales.

  • Reply 28 of 103
    brlawyerbrlawyer Posts: 828member
    Quote:

    Originally Posted by Apple ][ View Post

     

    Good, it couldn't have happened to a more deserving company.


     

    **** you, Samsung - the worse the better.

  • Reply 29 of 103
    gprovidagprovida Posts: 251member
    It is pretty clear now to even blogger and analysts that the big threat from China will be to Android premium sales companies SAMSUNG, LG, HTC, etc versus Apple. On the high end, SAMSUNG faces Apple iPhone line up and this market is not a commodity. Compounding the problem is Google putting pressure on Samsung to not develop Tizen nor create a differentiated Android phone.

    SAMSUNG's "Sony" strategy to copy and undercut prices has not been as effective as they hoped and therefore requires them to address three big problems:

    1. How to handle the low cost phones from Chinese manufacturers?
    2. How to truly innovate in hardware and software as well as business strategy versus copying Apple?
    3. How to get out from under the thumb of Google?

    This last one is the most important to address, otherwise they end up like their PC brethren with very low prices and near zero margins while Google (or Microsoft for PCs) suck all the profit out of the air.
  • Reply 30 of 103
    mr omr o Posts: 1,046member

    So, despite the phablet fad sales remained flat … ??

     

    One more thing: How much did they earn producing retina screens for Apple?

     

  • Reply 31 of 103
    Quote:

    Originally Posted by digitalclips View Post





    Such mixed points there. Google rooting for iOS over Android? Can you post one of your famous links for that?



    Meanwhile, to the other slippery comment, Apple has by far the lions share of the profitable market share in Europe already. So your 20% figure is just market share including all the crap and therefore pointless and irrelevant.



    EDIT:



    In fact, after reading this article, I'm guessing Apple's % of the profitable market share must be at almost 100%! image

    You're missing the point. Google doesn't want the EU to treat it like a monopoly, meaning that it's in its own best interest for Apple to have about a 20% piece of the pie in Europe.

  • Reply 32 of 103
    negafoxnegafox Posts: 480member

    Maybe things will look up for Samsung now that the Oculus Rift DK2 is using the Galaxy Note 3 parts! Gotta use the excess phones somehow.

  • Reply 33 of 103
    dasanman69dasanman69 Posts: 13,001member
    To paraphrase Drexl from True Romance
    "they musta thought it was Samsung day.... it ain't Samsung day, is it?"

    Minion "no man it ain't Samsung day"
  • Reply 34 of 103
    froodfrood Posts: 771member
    Quote:

    Originally Posted by cnocbui View Post

     

    I think the main reason for this result is that Samsung miscalculated badly with the S5.  It was bland and boring in appearance and just too much like the S4.  They were to complacent and too conservative. They goofed with staying with plastics for the body.  Pretty much every model in the entire Nokia range has a more pleasing design and most of it's Android competitors look better.

     

    The upper echelons at Samsung seem to lack courage and vision.  If they don't do something about that they are going to sink way back in sales.


     

    Samsung had bad results and the future looks bleaker.  I really don't know that Samsung could have done much better by adding more bells and whistles.  Metal backs wouldn't help them a whole lot, it hasn't helped HTC.  Xiaomi and Lenovo can do the same for less money and will eat share and profitability.

     

    Apple is in a good spot.  Their fans love them, and they still have low hanging fruit to add to their offerings...  Basically a larger screen and widgets.  Those two things are going to make the iPhone a radical improvement and substantial change over prior offerings and are going to make the iPhone 6 a blockbuster.

  • Reply 35 of 103
    jungmarkjungmark Posts: 6,814member
    <<Points at Sammy and Nelson-laughs. >>

    Wait, I thought increased competition is bad for only Apple.
  • Reply 36 of 103
    Quote:

    Originally Posted by sog35 

     

    Remember all those analysis and media a-holes who said Shamdung was eatting Apple's lunch?


    Those analysts were seeing Samsung eating all the celery.  Apple is getting the steak.

  • Reply 37 of 103
    512ke wrote: »
    Eventually the cream rises.

    Now the Apple-bashing media will turn to Xiaomi and herald them as the next Apple-destroyer, since Samsung is being dethroned.

    The thing is, I don't think Xiaomi is a direct threat to Apple, at least not right now.

    People will still pay a premium for Apple's awesome stuff.  People won't pay a premium for Samsung's stuff when they can get a Xiaomi that's just as good and nearly identical.

    My question is, if Sammy keeps falling, is there going to be a premium Android brand that truly sells?  

    Chinese are not oblivious to the fact that Xiaomi is a copycat company. If they can afford it, they will choose Apple products. Someone joked that mi phone stands for "mainland iphone" and mainland has a negative connotation.
  • Reply 38 of 103
    Quote:

    Originally Posted by mr O View Post

     

    So, despite the phablet fad sales remained flat … ??

     

    One more thing: How much did they earn producing retina screens for Apple?

     


    Their Flat Screen Division made $USD220M in profits.   That's everything from 130in screens to watch screens.

  • Reply 39 of 103
    Quote:

    Originally Posted by quanster View Post





    Chinese are not oblivious to the fact that Xiaomi is a copycat company. If they can afford it, they will choose Apple products. Someone joked that mi phone stands for "mainland iphone" and mainland has a negative connotation.

    agreed.   Asian middle class are more about brand label [I can afford this] than knock offs that don't have the real branding marks.   They would rather have a 3 year old iPhone 4s than a iPhone 6 knockoff.

     

    That's part of the thing about getting the iPhone shell prototypes photos... this is less about the Western Rumor mills and more about knock offs making something that looks exactly like the real thing from 3 feet away, for that scammy/scummy under market.

  • Reply 40 of 103
    Quote:

    Originally Posted by macxpress View Post

     



    And when you ONLY run commercials bashing the iPhone instead of trying to convince people you're phone is better because of feature A, B, and C then people get disinterested very fast. How many iOS device commercials do you see bashing what others don't do vs what the device actually does and why its good. 


    For as much as I disliked the Mac vs PC ads, they still made sense because the Mac was the ONLY alternative to Windows (please dont say Linux. You will be laughed out of the room).

     

    Samsung's ads only tell you that iPhone is bad. People will look at it and go buy the best Android phone (which is rarely Samsung) or WP.

     

    Which is why MS's anti-iOS ads are also dumb. Whatever effect they have, will only help Android manufacturers, since Android is the 2nd most prominent brand, not Windows Phone.

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