Samsung Electronics revenue slides 8.4% after mismanaged Galaxy S6 launch

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Comments

  • Reply 41 of 67
    dasanman69dasanman69 Posts: 13,002member
    wood1208 wrote: »
    When Apple launched iPhone 6 and 6 plus, it was uncharted territory where Apple never before launched large screen iphones. In Samsung case, both Galaxy S6 are identical in size and internals other than curved screen so must not have been that difficult to adjust ratio of production fast. May be the demand of galaxy s6/edge started faltering after initial launch weeks.

    Not true. The first iPhone's screen was huge compared to the smartphones at the time. They were then highly successful going to 4", and then played it safe coming out with 2 different sizes for the iPhone 6.
  • Reply 42 of 67
    sdw2001sdw2001 Posts: 18,016member
    "Apple may have experienced a similar, if less severe problem with the iPhone 6 and 6 Plus. Shortly after the launch of the two phones in September 2014, some reports indicated that Apple had underestimated demand for the 6 Plus and was scrambling to re-adjust production accordingly."


    --Similar obviously doesn't mean "same." Samsung overestimated demand for non-Edge models, and underestimated demand for Edge models. They got stuck with a glut of lower end phones and couldn't make enough high end phones. This is not what happened with Apple. Apple correctly estimated regular iPhone 6 demand, but underestimated Plus demand. All they had to do is increase 6 Plus production. Given their frankly amazing logistics/supply chain/production prowess, the problem was solved quickly. They didn't have a glut of regular 6's lying around, either. I know that I had a hard time getting one in the suburban Philly area even a month after launch. I actually had to go to Delaware to find what I wanted.
  • Reply 43 of 67
    cash907 wrote: »
    "Apple may have experienced a similar, if less severe problem with the iPhone 6 and 6 Plus. Shortly after the launch of the two phones in September 2014, some reports indicated that Apple had underestimated demand for the 6 Plus and was scrambling to re-adjust production accordingly."

    it's not a matter of "may," Apple did miscalculate demand for the 6 Plus. The difference is they were able to adjust production ratios faster than Samsung could and thus didn't miss out on sales to extent Samsung did. Likely this is thanks to Tim Cook doing what Tim Cook does best: logistics. That still doesn't excuse Apple dropping the ball on marketing research for demand prior to launch. They made the same mistake previously with the Gold iPhone 5S, which for a time after launch took months to get. Pointing this out doesn't excuse Samsung's miscalculation, rather simply illustrates how easy it is to get the numbers wrong when launching a new product with different variants, while lauding Apple's ability to adjust much more quickly to actual versus projected demand compared to other companies like Samsung. Why people like you are so sensitive to legit observations like this, I'll never know.

    Of course no company has perfect foresight. Pre-release surveys, etc. won't completely close the gap.

    You're avoiding the obvious difference which is that regardless of the initial misprediction of demand, Samsung hasn't sold as many S6's as they hoped to and now they have inventory, while Apple has sold every iPhone 6 and 6 Plus manufactured since launch.
  • Reply 44 of 67
    ein999ein999 Posts: 14member

    The s3 s4 and the s5 have l been good sellers.  WIth a removable battery and storage on all these previous phones a drop in sales should have been expected and most android owners of these phones are quite content with their holdings at this point so no reason to upgrade but maybe even purchase another s5 or note 4 instead.  The real thing is what is going to happen to the iphone market now that android is loosing battery and sd card.  Some people exclusively use android for battery and sd.  

  • Reply 45 of 67
    velmsvelms Posts: 7member
    I am sure that Samsung counted all the shipped S6 and S6 edge as revenue and profits.
    ConSidering the pRice drop , it's the time for samsung to clear the unsold inventory.
  • Reply 46 of 67
    croprcropr Posts: 1,124member
    Quote:

    Originally Posted by wood1208 View Post



    When Apple launched iPhone 6 and 6 plus, it was uncharted territory where Apple never before launched large screen iphones. In Samsung case, both Galaxy S6 are identical in size and internals other than curved screen so must not have been that difficult to adjust ratio of production fast. May be the demand of galaxy s6/edge started faltering after initial launch weeks.



    And you are an expert of curved displays production??  As a hardware engineer I can tell you that moving to a curved display  is an order of magnitude more complex than adding an extra inch of screen size, certainly if one takes in account that were already several competing 6" displays on the market.

  • Reply 47 of 67
    suddenly newtonsuddenly newton Posts: 13,819member
    ein999 wrote: »
    The s3 s4 and the s5 have l been good sellers.  WIth a removable battery and storage on all these previous phones a drop in sales should have been expected and most android owners of these phones are quite content with their holdings at this point so no reason to upgrade but maybe even purchase another s5 or note 4 instead.  The real thing is what is going to happen to the iphone market now that android is loosing battery and sd card.

    Oh don't you worry your pretty little head over iPhone's doom. You don't see a mass exodus of iPhone users to the S6 just because Sammy is "loosing" their battery and SD card.
  • Reply 48 of 67
    wood1208wood1208 Posts: 2,913member
    Quote:

    Originally Posted by cropr View Post

     



    And you are an expert of curved displays production??  As a hardware engineer I can tell you that moving to a curved display  is an order of magnitude more complex than adding an extra inch of screen size, certainly if one takes in account that were already several competing 6" displays on the market.


    I may not be expert in cell phone design but I have done hardware(chip,adapter,etc) design probably decades longer(started in 1981) probably you but that is besides the point. Not discounting difficulty of making curved screen phones but Samsung had first curved screen Note edge announced in September 2014(available 11/2014) so they had design and manufacturing expertise/experience producing curved phones before Galaxy S6 edge. For Apple, it was first time dealing with larger screen mass production and cope with the demand beyond their wild estimates/imagination.

  • Reply 49 of 67
    dasanman69dasanman69 Posts: 13,002member
    wood1208 wrote: »
    cropr wrote: »
     


    And you are an expert of curved displays production??  As a hardware engineer I can tell you that moving to a curved display  is an order of magnitude more complex than adding an extra inch of screen size, certainly if one takes in account that were already several competing 6" displays on the market.
    I may not be expert in cell phone design but I have done hardware(chip,adapter,etc) design probably decades longer(started in 1981) probably you but that is besides the point. Not discounting difficulty of making curved screen phones but Samsung had first curved screen Note edge announced in September 2014(available 11/2014) so they had design and manufacturing expertise/experience producing curved phones before Galaxy S6 edge. For Apple, it was first time dealing with larger screen mass production and cope with the demand beyond their wild estimates/imagination.

    Correction, Samsung first had a curved design with the Samsung Galaxy Nexus.
  • Reply 50 of 67
    atlappleatlapple Posts: 496member

    Unless Samsung can sell over 100 Million of their flagship phone which looks like it's never going to happen they simply are not competition to the iPhone. 

  • Reply 51 of 67
    Quote:

    Originally Posted by MacVicta View Post



    Wall Street loves to make excuses for Apple's enemies. Apple has similar problems with every iPhone launch, you don't see it resulting in a YOY drop in revenue and profit.



    I would say the difference is Apple has a rough launch and still posts a record quarter. Samsung has a rough launch and revenue and profits slide. 

  • Reply 52 of 67
    anomeanome Posts: 1,533member
    mike1 wrote: »
    Must be time for Samsung to run some ads that make fun of Apple customers. That's always a good way to make make customers convert.
    You mean those ads that show how Samsung owners are condescending jerks? And spend much of their time trying to defend their purchase to anyone passing by?

    Perhaps someone should tell them "Really, it's OK if you bought a Samsung device. Anyone can make a mistake, but you have to learn from it and move on. There are groups that can help you get over this rough patch, and on to the things that really matter."
    Oh don't you worry your pretty little head over iPhone's doom. You don't see a mass exodus of iPhone users to the S6 just because Sammy is "loosing" their battery and SD card.
    I thought he was saying the opposite. People chose Android over iOS because of removable batteries and SD slots. Now that Samsung have dropped these options from their flagship phone, people might (stress might) switch to iOS. (Most will probably go to other Android manufacturers who keep the removable battery and SD slot, some will stay with Samsung for whatever reason, but some may decide they might as well use an iPhone.)
  • Reply 53 of 67
    boltsfan17boltsfan17 Posts: 2,294member
    Quote:

    Originally Posted by TheUnfetteredMind View Post

     

     

    It's not just Apple's IP. As a fast follower, they steal any market leaders IP. Ask Blackberry, Dyson, etc. They're not a true leader, they just want to quickly follow the real leaders and make as much profit as they can.


    I'm always amazed at how much copying Samsung does when I'm in South Korea. There are so many copycat products Samsung sells in their home market that aren't available here. They really need to change the company name to SameClone. 

  • Reply 54 of 67
    flaneurflaneur Posts: 4,526member
    anome wrote: »
    You mean those ads that show how Samsung owners are condescending jerks? And spend much of their time trying to defend their purchase to anyone passing by?

    Perhaps someone should tell them "Really, it's OK if you bought a Samsung device. Anyone can make a mistake, but you have to learn from it and move on. There are groups that can help you get over this rough patch, and on to the things that really matter."

    Yes, but not to confuse the actors in the Samsung ads with real jerks, just like the Apple fans in the ads 700
    are not real jerks. (Click on the image to read the text.)

    The real jerks are the ones who make the ads like the first one above. Samsung's agency is 72andSunny, in LA, near Venice. The brilliant wannabe hipsters behind "the campaign that challenged blind allegiance to Apple's inferior products."

    https://www.72andsunny.com/work/samsung/fan-boys

    Here's a video about the meretricious agency itself, full of "inferior" Apple laptops and desktops, plus what looks to me like some 3.5" iPhones.

    http://hypebeast.com/2015/5/spaces-how-a-dirt-lot-with-empty-sleeping-bags-became-72andsunnys-home
  • Reply 55 of 67
    fallenjtfallenjt Posts: 4,054member
    Quote:
    Originally Posted by digitalclips View Post



    Heck, 8.4% is a fraction of the truth ... the cumulative slide over the last year few years is getting pretty enormous! I await Gatorguy's positive spin on this.

    According to the article I read on another website yesterday, the sale of GS5 even higher than GS6 in the last quarter. So, it appears that Samsung is doomed. What's wrong with S6/S6+ sale? Simple: people who could afford the device rather bought the original one (iPhone 6/6+) instead of a copied one (GS6/6Edge) because they're pretty much iPhone inspired (no mSD, no removable battery, no waterproof, metal case, glass back, touch fingerprint reader....) without iOS ecosystem. According to some guys living in Korea, they only saw GS6 once while iPhone 6/6+ were everywhere together with cheaper android handsets from LG and Samsung.

  • Reply 56 of 67
    slurpyslurpy Posts: 5,384member
    Quote:
    Originally Posted by Flaneur View Post





    Yes, but not to confuse the actors in the Samsung ads with real jerks, just like the Apple fans in the ads

    are not real jerks. (Click on the image to read the text.)



    The real jerks are the ones who make the ads like the first one above. Samsung's agency is 72andSunny, in LA, near Venice. The brilliant wannabe hipsters behind "the campaign that challenged blind allegiance to Apple's inferior products."



    https://www.72andsunny.com/work/samsung/fan-boys



    Here's a video about the meretricious agency itself, full of "inferior" Apple laptops and desktops, plus what looks to me like some 3.5" iPhones.



    http://hypebeast.com/2015/5/spaces-how-a-dirt-lot-with-empty-sleeping-bags-became-72andsunnys-home

     

    Wow at the description of the campaign:

     

    Quote:

     A campaign that challenged blind allegiance to Apple’s inferior products. While everyone was buzzing about the release of a new, highly anticipated phone, Samsung had to show the world that it still had a more innovative product.


     

    I love how they use those words as some sort of fact. Pretty fucking unprofessional, especially since that copy is coming from the ad agency, and not Samsung themselves. Also, I always thought "fanboys" was one word. I guess not. 

  • Reply 57 of 67
    fallenjtfallenjt Posts: 4,054member
    Quote:

    Originally Posted by ceek74 View Post

     

    Is this the "next big thing"?


    Already doomed.

  • Reply 58 of 67
    flaneurflaneur Posts: 4,526member
    slurpy wrote: »
    Wow at the description of the campaign:


    I love how they use those words as some sort of fact. Pretty fucking unprofessional, especially since that copy is coming from the ad agency, and not Samsung themselves. Also, I always thought "fanboys" was one word. I guess not. 

    "Fan-boys" — they probably have young English majors (in yoga pants) for copy editors, using out-of-date style manuals. Check out that hypebeast video. Lotta yoga pants.

    Unprofessional — the editing of the ads is ragged and messy, but that's what passes for "edgy" these days. And they throw in wall to wall zingers. Same thing. I really don't know how they live with themselves.

    On second thought, I know. It's the yoga pants.
  • Reply 59 of 67
    jungmarkjungmark Posts: 6,926member
    ein999 wrote: »
    The s3 s4 and the s5 have l been good sellers.  WIth a removable battery and storage on all these previous phones a drop in sales should have been expected and most android owners of these phones are quite content with their holdings at this point so no reason to upgrade but maybe even purchase another s5 or note 4 instead.  The real thing is what is going to happen to the iphone market now that android is loosing battery and sd card.  Some people exclusively use android for battery and sd.  

    Yea and the iPhone never had a removable battery or sd card but the sell record quantities year over year.
  • Reply 60 of 67
    heliahelia Posts: 170member

    Yet, that 6 billion profit is still huge. Hopefully by next year that will be gone completely, even if it goes to other fandroids companies. I'd rather Apple competing with likes of Sony or HTC than shamesung.

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