Following Apple's Record Quarter Announcement, Samsung Reports Profit Drop

[I7guy]

Just wanted to state, that last part is in no way unique to Apple. Maybe in your experience, but IMO John Lewis is better than Apple.

John Lewis is a department store. and yes other retail establishments have excellent customer service. But in the realm of needing to get your phone fixed (talking about accidental damage) pronto I love the idea having Apple stores across the country.

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Apple finally gave users a big screen phone that a lot of people were waiting for.I know my close friend was waiting for a bigger phone for a while and left his note 3 for a 6 plus.

But don't think Apple will have this same growth and profit next round.apple right now is where samsung was when they hit the streets with the s3.now that everyone got a big iphone there won't be a huge demand this time next year with the 6s and iPhone 7.

You can quote this and remember it when apple hits a saturation point like Samsung did next year.

There still is a population os 4s, 5 and 5c/5s that would be ripe for the 6s or 7. But generally I think you are correct, about the universe of those who will upgrade.

 

[dugbug]

Apple may design the chips themselves, but the actual production of the chips is mostly done by Samsung (with TSMC sometimes producing some of them - it's been repeatedly rumored that TSMC will take over the majority of production but I don't think that's ever come to pass.)

That is not what is meant by Samsung chips. Those are their eponyx line. The nameless fab houses like tsmc and Samsung are irrelevant

 

[gnasher729]

Apple finally gave users a big screen phone that a lot of people were waiting for.I know my close friend was waiting for a bigger phone for a while and left his note 3 for a 6 plus.

But don't think Apple will have this same growth and profit next round.apple right now is where samsung was when they hit the streets with the s3.now that everyone got a big iphone there won't be a huge demand this time next year with the 6s and iPhone 7.

You can quote this and remember it when apple hits a saturation point like Samsung did next year.

In other words, Apple is so successful, they are DOOMED.

Reality check: even if they share the same name, Samsung mobile and Samsung semiconductors aren't really the same company. One could fail, and close, while the other could still works.[

The guy you replied to didn't quite realise that Apple reports profits in dollars, while Samsung reports in Korean Won, and 1 US dollar is about 1100 Korean Won.

Well, another reality check: Apple makes most of his money from selling iPhones. If you leave iPhones from Apple's profits, and leave smartphones from Samsung's profits, then Apple actually _still_ made more profit this quarter than Samsung!

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Do we know what division of Samsung has dropped revenue and profits? it could be their phone division but it could be something else

We know. Samsung's overall profit has dropped badly. Samsung mobile's profits have dropped by two thirds (5.5 to 1.8 trillion Won). Samsung semiconductors (the ones that sell iPhone parts) has improved profits (2.0 to 2.7 trillion Won). If you add up the known numbers, the rest of Samsung has dropped as well.

 

[jonblatho]

edit: never mind

 

[Wicked1]

I think if Android and Samsung worked harder together they might be able to have a similar echo system as Apple. The fact that Apple builds OS and Device gives them much more ground, there are many MFG of Phones running so many different versions of Android, no one can keep up.

I was in the mall this weekend, very few phones have the Android 5.0 Lollipop version compared to KitKat, most are on 4.x and may never even reach 5.0 due to the carriers and Device MFG not testing new OS

I personally see the fight between handset MFG's and Android OS versions hurting Android, also their security is not as good IMO.

Funny rumors now are most Android MFG's are adopting the built in battery like Apple, Samsung rumor points to the S6 as having a Non Removable battery, we will see.

 

[Elvergun]

But don't think Apple will have this same growth and profit next round.apple right now is where samsung was when they hit the streets with the s3.now that everyone got a big iphone there won't be a huge demand this time next year with the 6s and iPhone 7.

You can quote this and remember it when apple hits a saturation point like Samsung did next year.

Hmmm...but if the market is saturated, and people are choosing Apple thanks to the bigger screens (with Xiaomi pushing them out of the low-end), where will that leave Samsung? It seems to me that Samsung is going to be squeezed out of the mobile market...with Apple at one end, and Xiaomi taking Samsung's place with lower priced offerings.

The doom and gloom you forecast for Apple is going to be the apocalypse for Samsung.

You can quote this and remember it when apple hits a saturation point like Samsung did next year.

Yeah, and we will also quote this and remember it when Samsung joins BlackBerry and Nokia to form the mobile has-been triumvirate.

 

[KdParker]

Samsung will be fine.

Ofcourse they wil be, Just saying that the profit margin will continue to drop following the course they are on now.

 

[dec.]

It looks like Samsung is pretty successful, and they are still selling more smartphones than Apple.

But unless you own Apple shares, please tell us how it improves YOUR life when Apple has a record quarter?

Whenever I read that Apple is stock-piling hundreds of billions of (largely un-taxed) dollars on some bank accounts, all I can think of is how much good could be done with that money if corporations were forced to make ethical decisions. 100 billion bucks could most likely bring forth a cure for cancer. It could build schools and provide education. There's no limit to what could be done with that money. All it does right now is sit on a bank account. And as I've said before, that's not even capitalistic - it's just capital that's not being used for anything useful, not even for their own product research or QA (and especially Apple's software QA could really need a boost).

And no, I'm not American. Neither am I a socialist. But this is just immoral.

Where do you draw the line for expecting a cancer cure from Samsung instead of from Apple?

 

[apolloa]

John Lewis is a department store. and yes other retail establishments have excellent customer service. But in the realm of needing to get your phone fixed (talking about accidental damage) pronto I love the idea having Apple stores across the country.

I have had good and bad experiences with Apples support. And John Lewis have tech support too.

 

[I7guy]

I have had good and bad experiences with Apples support. And John Lewis have tech support too.

Right, and you're across the pond and I don't know if john Lewis sells Apple products...but I'm sure they are capable of good customer service.

The two times I needed Apple support were both good experiences.

 

[kdarling]

... Big android phones were made because the android OS and the manufacturers couldn't make the android phone's battery efficient. So they had to put in much larger batteries. After that point they said what the heck, lets make a bigger screen.

That was a bogus theory started by Gruber back in January 2012.

Not only does it make zero sense (if you want to conserve battery, you use a smaller screen like Apple does), but his predictions based on such a flawed premise turned out to be incredibly wrong:

"If I’m right, we will start seeing smaller LTE Android handset sets a year or so from now, and the tech press will collectively forget the “bigger is inherently better” mindset that pervades phone reviews today. - Gruber"

Uh, no. Not even close. Instead, even Apple joined in with the bigger display crowd.

 

[TallManNY]

That was a bogus theory started by Gruber back in January 2012.

Not only does it make zero sense (if you want to conserve battery, you use a smaller screen like Apple does), but his predictions based on such a flawed premise turned out to be incredibly wrong:

"If I’m right, we will start seeing smaller LTE Android handset sets a year or so from now, and the tech press will collectively forget the “bigger is inherently better” mindset that pervades phone reviews today. - Gruber"

Uh, no. Not even close. Instead, even Apple joined in with the bigger display crowd.

How come no android maker has put a flagship phone is a small package? I believe it was because they could not get the design to fit in the small spacing the way Apple could. By giving themselves more volume to work with, they could do a lot of things that they had to do. They had to include a bigger battery because even with the bigger battery their battery life was terrible. They had to overclock their CPU to get rid of the lag. Remember the GS3? You were lucky if that phone made it from the morning until 5 p.m. Samsung couldn't make that phone thin and with a small screen.

But, yes Gruber and others did not realize that many people want as big a screen as possible while still being able to fit in a pocket. Many of my friends have the 6+ and swear by the larger screen now. But I think the android guys ended up there partly by happy accident. Nokia also made large screens and big phones and I'm pretty sure it is because they couldn't make the phone small. Blackberry's Z30 has a large screen. It is also heavy and thick. They want to make a thin phone, but they couldn't. Now the top android guys can make their phones thin. But it wasn't the case three years ago when they started the Phablet move.

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There still is a population os 4s, 5 and 5c/5s that would be ripe for the 6s or 7. But generally I think you are correct, about the universe of those who will upgrade.

I'd guess that by the time the 6s comes out, 70% of iPhone users will not be using a 6. Also 100% of non-iPhone users will not be using a 6 (and that will be the vast majority of cellphone users). So there is still going to be a huge universe of potential customers to sell the 6s to. We have no idea how good a phone it will be. We can guess that its form factor will be the same, but we don't know how it will compare to its competitors. But judging by past years it will arguably be the best smartphone money can buy when it comes out.

And we do know that the story of iPhone saturation has not played out in any way shape or form so far. And we've been hearing this story and the "law of large numbers" year after year now.

So there is a huge universe of potential customers and a strong track record of producing one of the best products in the industry. We could be looking at growth again next year.

 

[sinsin07]

Unless you're an investor and have stock in the company, that means almost nothing. Samsung will continue to produce mobile and devices and tablets going forward, and a forum full of people predicting Samsung's demise isn't going to do a thing to change that.

Fans of Palm/WebOS, Nokia/Symbian and Blackberry probably have a differing point of view.

History will write those once popular companies and or OSes met their death by iOS (even though Android had a hand).