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

[Keirasplace]

I love all the Samsung doom and gloom here, especially considering Samsung's profits are in the trillions and Apple's profits are only in the billions.

Not to mention Samsung producing most of the next iPhone's chips.

Yeah, Samsung's definitely on their way out.

MacRumors: Keeping it funny, one article at a time.

Ok, lets see :

- Samsung is not producing them currently... TSMC is... And its only rumors they're producing them in the future, so that's not a given.

- Being a contract component maker is not the best place to be to be secure next year... You're not much in control of your destiny. Apple could be with TSMC the year after or even have Intel fab it, who knows...

Having a huge fab dependent on one one buyer's whim can be expensive in the down years; this puts pressure on Samsung to keep their margins down to compete with other foundries so they get the contract.

- The revenues and profit margins from being fab chip maker are not even in the same league as the ones coming from selling their own phone.

 

[Burger Thing]

I love all the Samsung doom and gloom here, especially considering Samsung's profits are in the trillions and Apple's profits are only in the billions.

Not to mention Samsung producing most of the next iPhone's chips.

Yeah, Samsung's definitely on their way out.

MacRumors: Keeping it funny, one article at a time.

Huh? Have you been living with your head stuck in the sand? We are talking about profits in the mobile segment.

samsung-mobile-profit-down-by-a-third-in-2q-2014/

samsungs-q3-financials-show-ongoing-struggles-in-mobile/

samsung-electronics-fourth-quarter-profit-falls-27-1422489917

Etc, etc

 

[Navdakilla]

Android stand have moved on from Samsung. It's all about nexus or htc or one plus one these days

 

[nia820]

The sales drop is not surprising seeing how well the iPhone 6/6+ is doing.

I think in order for Samsung to survive they need to give Tizen a makeover and make all their phones run on it.. I think android is great but Samsung needs to make their own OS. Samsung biggest problem is that it runs on android . Even I love android, the average consumer doesn't like it because it isn't user friendly.

LG is making better android phones these days.

 

[spectrumfox]

Huh? Have you been living with your head stuck in the sand? We are talking about profits in the mobile segment.

samsung-mobile-profit-down-by-a-third-in-2q-2014/

samsungs-q3-financials-show-ongoing-struggles-in-mobile/

samsung-electronics-fourth-quarter-profit-falls-27-1422489917

Etc, etc

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.

 

[Feelx13]

Apple is not killing Samsung, I guess all of us that love Apple forget that all iPhones have Samsumg parts. If Apple really wanted to dis Samsung they need to stop buying their parts . Apple is probably their number one customer .

 

[spectrumfox]

Apple is not killing Samsung, I guess all of us that love Apple forget that all iPhones have Samsumg parts. If Apple really wanted to dis Samsung they need to stop buying their parts . Apple is probably their number one customer .

Shh! You're disturbing the reality distortion field...

 

[Spott66]

The use of the $ sign implies U.S. dollar.

But keep going with the snark, it seems to suit you very well...

What??? The comment was about Samsung making trillions..... Did you miss that?

 

[dec.]

It's true. Samsung makes more than enough money to stay in business.

Galaxy S phones will be around for the foreseeable future. Better get used to it.

Besides, Apple needs Samsung's ideas to stay in the lead.

I don't doubt that they will stay in business, they probably will make good money with being one of Apple's major suppliers. Not sure about the "trillions" though...

 

[kerrikins]

let's be serious. Apple copied Samsung by producing Phatphone and succeed. So i guess we can call it even.

Do people actually accuse Samsung of "bullying"? I guess it's only okay when Apple does it (with I'm Mac commerical)

I know that we can argue this until we're blue in the face, but this is my perspective.

The I'm a Mac commercials always made me chuckle ruefully, as a Windows user at the time, because I identified with what was going on in them. I didn't really feel as though Apple the company was mocking me. Not only that, but more importantly, they made me want to switch to a Mac.

Now, the Samsung 'next big thing' commercials and others - well, those made me feel like Samsung was mocking me. And they didn't make me want to switch to Samsung - on the contrary, they cemented my opinion that if I ever switched to Android, I'd go for LG or HTC or a Nexus.

Just different ways the companies come across, imo, and also a difference in marketing - Samsung isn't marketing to Apple users, they're marketing to their own base and people who hate Apple. Apple wanted people to switch from Windows.

 

[Keirasplace]

Makes sense to me and it has to do with Apple and Samsung business models. Apple is focused on making everyone exchanging phones constantly in US. This approach depends highly on cooperation with carriers.

Samsung, on the other hand, is focused on emerging markets and countries where subsidies is not the primary method of acquiring a phone. The fault of Samsung comes from the way it sells phones, that is, its business model is pretty simple: you go to a store, ask the seller for the model you want and pay for it.

Also, Samsung phones usually have replaceable batteries and SD-card slots. You can keep your phone usable a bit longer. I know that batteries from iPhones usually last longer than Samsung ones, but once an iPhone battery reached its lifecycle, you'll probably think on buying a new phone.

There is nothing to do with innovation from a user's perspective. It's innovation from the seller's perspective.

You are the funny one. Do you know how much it costs replacing the battery in the 4S, 4 and 3GS around here : $20 (you leave your phone and pick it up 30-60 minutes later). That's all. Nobody's replacing a phone instead of spending $20. I can get the 5, 5c battery replaced for $30; haven't checked for the 5s and 6.

Most past Iphones were sold with more storage than the average Android phone, you can use it a hell of a long time without filling it. Got the 16G 3GS with about about 80 apps and 4000 songs and a hundred photos and it's not even full (so I can put a film on if I feel like it). If I need to watch videos I usually stream them of my own DLNA network, don't even need to store them unless I'm not on WIFI.

Also, most people don't change phones each year. They are on contract by your own admission remember; contracts are two years. Contracts are just loans to people so they can buy phones rolled into their phone bills. T-mobile separated the loan section from the phone bill itself so you see exactly what you are getting into.

Also, Iphones are durable (better build quality) and are often resold, gifted later on. Most Android phones get no software updates that all. So, you're stuck on some old unsecure software that barely runs any new app. The fact the resale market for Android phones is dismal flies in the face of them being usable long term.

 

[Burger Thing]

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.

I think most people here are aware, that Samsung as a company is here to stay. The article and the discussion is about the fact, that Samsung's mobile profits have been showing a continuous decline.

The days were a user of a premium phone would either choose Apple and iOS or Samsung (which stood almost synonymously for premium a Android device) are coming to an end, though. Plenty of alternatives in the android world, and the profits are reflecting this.

 

[doelcm82]

It's sad I used to get so many down votes every time I suggested that apple should make a larger phone. I knew so many people who wanted bigger screens. People claimed my sample size wasn't big enough. =/

Well you turned out to be right. Still, I'd probably downvote you now just for spite, if MacRumors would let me.

 

[Spott66]

Of course they are here to stay. Because the world needs curved tvs and washing machines and fabs.

The title could have been even more flamebaitish....if you do the math wouldn't this be samsungs "record" decline coinciding with Apples record?

 

[ThisIsNotMe]

You mean just like how Apple has totally and utterly followed and ripped off the Android market by producing a phablet then? Oh yeah, you'll all conveniently forget that one right?

Thats like saying that Vizio copies Sony in making a 65" television.
Complete faux argument.

 

[Keirasplace]

Android stand have moved on from Samsung. It's all about nexus or htc or one plus one these days

Motorola and HTC are bleeding money and the "one plus one", not even sure its making money (though it had decent reviews).... Good thing Android users put their chips on these people to beat Apple. They're only 50B dollars in annual profits behind .

 

[Michael Scrip]

Before people go off on one, please remember the actual results of shipped phones worldwide by Samsung is much higher than Apple:

http://www.cnet.com/news/samsung-global-smartphone-share-falls-as-apples-remains-static/

No doubt Samsung sells more units... but many of them are cheap phones with barely any margin.

Samsung's profits are down this year... even their incredible volume couldn't fix that.

They sold more smartphones yet made less money.

That's the real story here... and it's troubling.

In fact Apple has remained stagnant, Samsung has dropped, and all the other manufacturers have increased their numbers... Apple has a very long way to go to be worldwide number one.

Apple's "share" remained stagnant... but you're forgetting how percentages work.

The entire market got bigger... so that has to be considered too.

Apple actually sold more phones in 2014 than they did the year before... and that is what we call GROWTH.

 

[iZac]

... Apples big sales boost has come from China, the market it just entered. So if the chart in my link is anything to go by, it is other manufactures who have taken Samsungs share and not Apple.

Apple has been here for years. But you're right, it's the 6+ that now caters for a market that previously aspired to the Galaxy Note because they can watch TV comfortably in the metro on their massive phones.

...and gold. Freaking gold iPhones everywhere

 

[LordQ]

"I'm excited about the next Samsung... Not the phone, the refrigerator" –Siri, 2013

 

[kcirtap00]

I love all the Samsung doom and gloom here, especially considering Samsung's profits are in the trillions and Apple's profits are only in the billions.

Not to mention Samsung producing most of the next iPhone's chips.

Yeah, Samsung's definitely on their way out.

MacRumors: Keeping it funny, one article at a time.

Samsung's profit is in the trillions of won and Apple's profit is in the billions of dollars. Apple makes MUCH more than Samsung

 

[DoctorKrabs]

Anyone who says Apple copied big phones is an idiot.

Big Android phones were only made because of the iPad.

All Android phones were made because of the iPhone.

 

[MrX8503]

Let it sink in that this was mainly due to the Chinese market it only entered into in the last quarter, come back if it's the same next quarter.

Is Samsung not in the Chinese market?

On Samsung's home turf, Apple increased their market share from 15% to 33%. Samsung lost market share, falling to 46% from 60%.

Apple's revenue was $10B more than what analysts expected.

 

[Michael Scrip]

Is Samsung not in the Chinese market?

On Samsung's home turf, Apple increased their market share from 15% to 33%. Samsung lost market share, falling to 46% from 60%.

Apple's revenue was $10B more than what analysts expected.

Also... a year ago Samsung sold 82 million smartphones in the Holiday quarter. This year they fell to 75 million.

Apple sold 51 million smartphones during last year's Holiday quarter... but they jumped to 75 million this year.

One going up... one going down. Samsung must be freaking out.

 

[wigby]

You mean just like how Apple has totally and utterly followed and ripped off the Android market by producing a phablet then? Oh yeah, you'll all conveniently forget that one right?

How do you copy a phablet? You copy features, icons and looks. How do you copy size? Samsung is moving back to 4" screens on some models. No one accuses them of copying. Oh that's right, you conveniently forgot that the phones look and act different even though they have the same screen size.

 

[dec.]

How do you copy a phablet? You copy features, icons and looks. How do you copy size? Samsung is moving back to 4" screens on some models. No one accuses them of copying. Oh that's right, you conveniently forgot that the phones look and act different even though they have the same screen size.

Didn't you know? Android invented 5.5 inches!!!11!