Samsung expects Q1 profits to drop 30%, but declines are slowing

Posted:
in General Discussion edited April 2015
Samsung on Tuesday provided investors with a new forecast for its March quarter sales, indicating that earnings declined yet again, likely falling 30 percent from the same period a year ago.




Despite continued losses, Samsung's projected earnings are actually an improvement from the last two quarters, when sales fell 36 percent in the fourth quarter of 2014, and a whopping 60 percent in the quarter before that.

Still, the March frame will represent the sixth consecutive quarter that Samsung sees declining sales, as noted by The New York Times. Samsung has been squeezed at the low-end by cheap Chinese smartphones, while Apple's premium 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus have attacked the South Korean electronics maker from the high end.

But the preliminary March quarter results are also better than analysts had expected, leading the market to believe that Samsung could be turning things around. In particular, the March results represent the three-month period before the launch of the new flagship Galaxy S6 and Galaxy S6 Edge.

Despite criticisms comparing the Galaxy S6 design to Apple's iPhone, and a new "bendgate" controversy aimed at Samsung, initial reviews for the Galaxy S6 have been generally positive, with tech journalists saying the new device is the best Android handset available on the market.




Samsung's expected decline in the March quarter will contrast with Apple's own earnings, due to be reported on April 27. It's generally believed that it will be another record quarter for Apple, riding high on continued strong sales of the iPhone 6 and iPhone 6 Plus.

Recent data suggests Apple was on track to sell at least 54 million iPhones in the just-concluded March quarter, while more bullish estimates go as high as 58 million units. In the same quarter a year ago, Apple sold a then-record 43.7 million iPhones.
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Comments

  • Reply 1 of 66
    bizzarebizzare Posts: 62member
    That's a funny headline "but declines are slowing".
  • Reply 2 of 66
    narcomanarcoma Posts: 37member

    :)

  • Reply 3 of 66
    davidwdavidw Posts: 2,068member
    Wait a minute! This 30% decline is Samsung 6th consecutive quarter of declining sales. So the year ago quarter that it was compared to, was the second quarter of declining sales. And we're suppose to believe that somehow Samsung sales is improving because it's not declining as much as the last quarter. Which was compared to the first quarter of declining sales a year ago. But suppose last year second quarter of decline was a lot worse than the first quarter of decline. Then a 30% decline this quarter could be worse than the 36% decline last quarter. I'm pretty sure that when the coming quarter that gets compared to year ago quarter, that took the 60% nose dive, that even a 10% decline would not be good news.
  • Reply 4 of 66
    disturbiadisturbia Posts: 563member

    Yeah ... declines are slowing .... because ... well ... look at the BEST android phone available ... it's iPhone with f***ng Samsung name on it!

  • Reply 5 of 66
    rob bonnerrob bonner Posts: 237member

    Is this just for mobile or does it include their other divisions.  Do like their TV's and refrigerators.  Not in love with their monitors or phones.

  • Reply 6 of 66
    davidw wrote: »
    Wait a minute! This 30% decline is Samsung 6th consecutive quarter of declining sales. So the year ago quarter that it was compared to, was the second quarter of declining sales. And we're suppose to believe that somehow Samsung sales is improving because it's not declining as much as the last quarter. Which was compared to the first quarter of declining sales a year ago. But suppose last year second quarter of decline was a lot worse than the first quarter of decline. Then a 30% decline this quarter could be worse than the 36% decline last quarter. I'm pretty sure that when the coming quarter that gets compared to year ago quarter, that took the 60% nose dive, that even a 10% decline would not be good news.

    There will be spin after spin after spin concerning this news. Upsetting the $amsung cart...
  • Reply 7 of 66
    appexappex Posts: 687member
    Samsung made a great product and then screwed it all:

    Mac Owners Should Hold Off on New Samsung T1 Flash SSD
    http://www.macobserver.com/tmo/article/mac-owners-should-hold-off-on-new-samsung-t1-flash-ssd
  • Reply 8 of 66
    SpamSandwichSpamSandwich Posts: 33,407member
    Samsung: "We're winning by losing less!"
  • Reply 9 of 66
    SpamSandwichSpamSandwich Posts: 33,407member
    appex wrote: »
    Samsung made a great product and then screwed it all:

    Mac Owners Should Hold Off on New Samsung T1 Flash SSD
    http://www.macobserver.com/tmo/article/mac-owners-should-hold-off-on-new-samsung-t1-flash-ssd

    Yikes.
  • Reply 10 of 66
    The Apple of today doesn't mind giving customers what they ask for - like big screens, 3rd party keyboards, etc. Before Apple seemed to ignore those type of requests.
  • Reply 11 of 66
    jungmarkjungmark Posts: 6,926member
    At least Sammy's consistent. I wonder if the number of articles on this match the number of FUD articles about Apple when they don't break records.
  • Reply 12 of 66
    dasanman69dasanman69 Posts: 13,002member
    disturbia wrote: »
    Yeah ... declines are slowing .... because ... well ... look at the BEST android phone available ... it's iPhone with f***ng Samsung name on it!

    That might make sense if that phone was currently for sale.
  • Reply 13 of 66
    dasanman69dasanman69 Posts: 13,002member
    Samsung: "We're winning by losing less!"

    Sadly, they're still beating the snot out of the other Android OEMs. Samsung's current slide is a perfect opportunity for one of them to create a compelling device, and take the number 2 spot, but I doubt that'll happen.
  • Reply 14 of 66
    hexclockhexclock Posts: 1,263member
    appex wrote: »
    Samsung made a great product and then screwed it all:

    Mac Owners Should Hold Off on New Samsung T1 Flash SSD
    http://www.macobserver.com/tmo/article/mac-owners-should-hold-off-on-new-samsung-t1-flash-ssd
    I hate external drives that have software pre-installed. I have a USB stick like that. It has several .exe files along with a couple directories that cannot be deleted, even after a format.
  • Reply 15 of 66
    dick applebaumdick applebaum Posts: 12,527member
    bizzare wrote: »
    That's a funny headline "but declines are slowing".

    ... To conquer death, you only have to die ...
  • Reply 16 of 66

    Does anyone know if Samsung actually paid Apple the money they lost in the suit?

  • Reply 17 of 66
    slurpyslurpy Posts: 5,384member
    Quote:

    Originally Posted by Rob Bonner View Post

     

    Does anyone know if Samsung actually paid Apple the money they lost in the suit?


     

    Of course not. 

  • Reply 18 of 66
    512ke512ke Posts: 782member
    Samsung is a great manufacturing company. No doubt. Tough for them that they cannot differentiate their product from other Android manufacturers like Xiaomi.
  • Reply 19 of 66
    lkrupplkrupp Posts: 10,557member
    Quote:

    Originally Posted by AppleInsider View Post





    Despite criticisms comparing the Galaxy S6 design to Apple's iPhone, and a new "bendgate" controversy aimed at Samsung, initial reviews for the Galaxy S6 have been generally positive, with tech journalists saying the new device is the best Android handset available on the market.

     

    I place tech journalist’s reviews on the same plane as movie critic’s reviews. They are often completely out of touch with the public response.  

  • Reply 20 of 66
    Quote:

    Originally Posted by Slurpy View Post

     

     

    Of course not. 




    Just curious why we never hear anything about that.  It does seem like a court ruling does not really buy you anything.

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