Samsung predicts massive profit decline, blames slumping smartphone sales

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  • Reply 21 of 172
    SpamSandwichSpamSandwich Posts: 33,407member
    Cheapo phones from Xiaomi will continue to erode Samsung's base.
  • Reply 22 of 172
    rogifanrogifan Posts: 10,669member
    All that money they spent on stuffing the channel and advertising and yet they're couldn't buy brand loyalty. :D
  • Reply 23 of 172
    fred1fred1 Posts: 1,112member
    bobbyfozz wrote: »
    Their dishonesty in marketing is NOT helping them.

    Would you care to be a bit more specific? Vague rants don't add much to the discussion

    It's interesting to see how this seems to vindicate Apple staying out of the lower end of the market - too easy to compete there when people care more about price than name or features.
  • Reply 24 of 172
    rogifanrogifan Posts: 10,669member
    sog35 wrote: »
    Hilarious that Samsung is blaming the mid and low end phones for their profit decline.  They never made much money on those phones.

    Where they are truly hurting is the top end.  The Galaxy S5 has been an utter disaster.  They are selling 25% less S5's than S4's even with massive discounts and buy one get one free offers.  But Samsung will not say this.  Its so much easier to justify losing the low end due to price rather than the high end because of lack of innovation.
    I suspect that's why there are rumors Samsung is going to launch a "premium" version of the S5 with a non-plastic case around the launch of the next iPhone. I see that as nothing more than desperation. USA Today ran an article about how the next version of Galaxy phones can't come soon enough. But the current version was released only a couple months ago. Talk about a flop!
  • Reply 25 of 172
    maestro64maestro64 Posts: 5,043member
    Quote:

    Originally Posted by DaveN View Post



    I don't care if their profits are dropping as long as they have the money to pay off their patent losses to Apple.

    You know I was thinking, it was probably part of Apple Strategy to keep buying part from them so when they won their cases and Samsung maybe refuse to pay they just offset what Apple may have owed them for what Samsung owed them from their lost cases. this is standard practices between company when things like this happen. Also Apple maybe able to do that now that they have alternate sources for all their parts which they were buying from Samsung. They could take the $1B create and if Samsung refused to ship they new part they say find we will buy them elsewhere. This is the loose/loose situation for Samsung due to the fact they would not get paid, thus earning will such, and if apple pulled the business it will take them 12 to 18 months to try an make up the lost Apple business. Apple is now in the power position in this situation.

  • Reply 26 of 172
    rogifanrogifan Posts: 10,669member
    Samsung is really screwed because Apple hasn't even released the new iPhone yet. Samsung has played most of its cards, Apple hasn't.
  • Reply 27 of 172
    mknoppmknopp Posts: 257member

    But according to tech analyst Samsung is winning the cellular phone wars after all business thrive on market share and unicorn dander. All of these old stodgy things like profits and net income are highly over-rated. At least they are as long as Apple is the clear leader in those areas.

  • Reply 28 of 172
    palominepalomine Posts: 362member
    I have to think the top level management at Samsung are taking a long hard look at their smart phone division's almost insane desire to beat Apple at all costs. Flooding the market with very low profit products is hurting the whole company. I seriously suspect some heads may roll in the phone division over this and they may scale back the desire to 'win' the numbers game (AKA chanel stuffing, discounts, give awaits and so on) and go back to looking at how to actually make money, even if that means conceding that Apple is actually selling more profitable products by far.

    Indeed! Can anyone find the story from over a year ago where the head guy at Samsung went on a long vacation (which he usually does only when about to make major shake ups)...he came back saying something about their phone division being a drain on the company...

    Excuse me, I'm off to hunt down that story. I know I remember reading it. Was surprised the phones didn't get axed back then. Maybe there was desperate pleading that gave them more time. Now, I would not be at all surprised to see Sammy take drastic action.
  • Reply 29 of 172
    mknoppmknopp Posts: 257member
    Quote:

    Originally Posted by Fred1 View Post





    Would you care to be a bit more specific? Vague rants don't add much to the discussion



    It's interesting to see how this seems to vindicate Apple staying out of the lower end of the market - too easy to compete there when people care more about price than name or features.



    I can be. Because of Samsung's shady dealings with Apple and their offensive marketing in the cellphone arena I actively avoided buying their televisions for my last two television purchases. Samsung's mobile division's marketing strategy has an impact on the company as a whole beyond simply losing profits in the mobile market.

  • Reply 30 of 172
    bdkennedy1bdkennedy1 Posts: 1,459member

    Translation = We've run out of ideas to steal.

  • Reply 31 of 172
    boredumbboredumb Posts: 1,418member

    I'm…devastated...

    I may wear black for, oh, about a minute.

    It seems odd that they are blaming diminished interest in smartphones,

    although I confess I'm less interested than ever in their 'smart'phones.

  • Reply 32 of 172
    jameskatt2jameskatt2 Posts: 720member
    1. Samsung is being out marketed and outsold at the low end of the market by Chinese companies who love to copycat Samsung's products.

    2. Samsung's large smartphones are cannibalizing sales of Samsung's tablets.

    3. Samsung's flagship S5 is being outsold by the iPhone 5c in the United States, even more outsold by the iPhone 5s.

    4. Google is making it easier to make Samsung clones. Google doesn't care about Samsung profits. It only cares about the number of ads it an show.

    5. Samsung has nothing of Apple to copy - yet - leaving it with failure after design failure.

    6. Samsung's sales have gone down so much it is hurting its own component factories - like the ones making screens for smartphones.

    Poor Copyist Samsung. Poor kitty.
  • Reply 33 of 172
    freediverxfreediverx Posts: 1,423member
    Quote:

    Originally Posted by Rogifan View Post





    I suspect that's why there are rumors Samsung is going to launch a "premium" version of the S5 with a non-plastic case around the launch of the next iPhone.

     

    Same crap as before, now with a tacky brushed aluminum shell hiding the cheap plastic within. That, plus tons of pixels invisible to the human eye, in all their oversaturated AMOLED glory.

     

  • Reply 34 of 172
    boredumbboredumb Posts: 1,418member
    Quote:

    Originally Posted by sog35 View Post

     
    Quote:
    Originally Posted by leavingthebigG View Post





    I read Samsung was stating the S5 was its fastest selling smartphone ever. I will get article's link then post it here. No publication is questioning the lies. They are just accepting the lies.

     

    Fasting selling the first few weeks.....when they were channel stuffing. 

    Now that vendors are refusing to take additional shipments because the original shipments have not sold yet the real numbers are coming out AKA June Qtr financials.

     

    The media is totally ignoring this story.

    Most in the know are estimating S5 sales are 20-25% below the S4.  Which was about flat to the S3. 

     

    One of the few media sites that are spilling the beans are saying they only sold 11 million S5 in its first quarter of release.

    http://www.theinquirer.net/inquirer/news/2352262/samsung-warns-of-poor-q2-due-to-slowing-galaxy-s5-sales


    Uh, no, it says that a Korean analyst firm dropped its quarterly projection for Samsung sales by 11 million - from 88m to 77m….

    It's really okay to actually read your own posted links!;)

  • Reply 35 of 172
    abazigalabazigal Posts: 114member
    It's kinda freaky when I think about it. Just last year, I was having a discussion at Cnet, and this guy accurately predicted (in hindsight) that moving forward, Google would become more closed, Apple would fall in market share but actually become more profitable, while Samsung would increase in market share but drop in profits.

    It makes sense now that I think about it. Samsung simply grew too large too soon. They insisted on releasing so many models so quickly even though technology itself doesn't improve that quickly. That's why you get gimmicks like a heart-rate monitor that sports just a 50% accuracy rate (unacceptable for what is being touted as a medical / health feature). It's like that runner who decided to sprint right at the start of a long marathon just to wow the crowd. Now Samsung is starting to run out of steam and ideas, and at a bad time too. Apple is expected to release two larger iPhone models and iOS 8 is shaping up to be a major release in terms of features and functionality.

    Samsung - don't blame anyone. You are simply reaping what you have sown.
  • Reply 36 of 172
    cwscws Posts: 59member
    Quote:

    Originally Posted by mostcallmerob View Post

     

    You guys speak of innovation and Apple, but honestly, what innovation have they supplied to the smartphone market? They keep making their phones slimmer, upgrading internals with better chips, increasing screen resolution, and now following Samsung, they are finally increasing their screen size to something respectable. You think that innovation is slimming down and making a screen bigger, big whoop. 


    Touch ID, just introduced in Apple's latest iPhone, is an amazing example of groundbreaking innovation: the very first highly reliable and incredibly convenient biometric security system ever installed on a mobile device.  Oh, and I forgot to mention the first 64-bit processor on a mobile phone.  As Phil Schiller would say, "Can't innovate? My Ass!"

  • Reply 37 of 172
    freediverxfreediverx Posts: 1,423member
    Quote:

    Originally Posted by mostcallmerob View Post

     

    You guys speak of innovation and Apple, but honestly, what innovation have they supplied to the smartphone market? They keep making their phones slimmer, upgrading internals with better chips, increasing screen resolution, and now following Samsung, they are finally increasing their screen size to something respectable. You think that innovation is slimming down and making a screen bigger, big whoop. 


     

    Welcome back, mostcallmerob. Here for your quarterly pro-Android/anti-Apple rant?

  • Reply 38 of 172
    512ke512ke Posts: 782member
    The Next Big Thing (That Nobody Wants)
  • Reply 39 of 172
    andysolandysol Posts: 2,506member
    mknopp wrote: »

    I can be. Because of Samsung's shady dealings with Apple and their offensive marketing in the cellphone arena I actively avoided buying their televisions for my last two television purchases. Samsung's mobile division's marketing strategy has an impact on the company as a whole beyond simply losing profits in the mobile market.

    I also had a samsung Plasma. When I went to upgrade to a little larger, I made it a point not to even look at Samsung TVs. I still have a samsung washer and dryer but when those go out- won't even look their way. Don't discount the lawsuits and the proven theft samsung has done- it single handedly made me look at the companies I support- not just the product.
  • Reply 40 of 172
    anantksundaramanantksundaram Posts: 20,404member
    Quote:

    Originally Posted by mostcallmerob View Post

     

    You guys speak of innovation and Apple, but honestly, what innovation have they supplied to the smartphone market? They keep making their phones slimmer, upgrading internals with better chips, increasing screen resolution, and now following Samsung, they are finally increasing their screen size to something respectable. You think that innovation is slimming down and making a screen bigger, big whoop. 


    You forgot the /sarcasm tag.

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