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Samsung Profits Tumble as Apple Enters Large-Screen Phone Market and Low-End Options Thrive
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Good. Even though I'm no longer in the iPhone market, I will not buy a Samsung device for a whole host of reasons. But most especially because of their hubris and lack of any originality.
If I had to go Android, I'd choose a different maker entirely (maybe HTC or something).
If I had to go Android, I'd choose a different maker entirely (maybe HTC or something).
Samsung's problem is NOT APPLE it's the low-end Android phones that are cheaper and for all practical purposes about the same. They got little to differentiate themselves anymore and their fighting a battle to the bottom.
Samsung is definitely in trouble.
Their marketing campaign around the time the S3 was introduced was extremely successful and they managed to paint themselves as the Android alternative to the iPhone. They also brought the Note line which they were able to enjoy being unrivaled in for several years.
Fast forward to today and it's Samsung who's really having the innovation crunch that doomsayers always placed on Apple. On the low end you have Xiaomi and other such manufacturers making devices that are similar but far cheaper and crushing Samsung in China, India, and similar markets. Samsung has lowered prices to hold onto marketshare in those places but at the expense of profits.
In places like the US they are getting hammered by Apple on the high end. This 60% drop in Q3 doesn't even take into account most of the 6/6+ load. The Q4 numbers might be just as bad, if not worse once Apple hits their stride and supply begins to meet demand next month.
Samsung's main differentiating factor was the large screens. They were the Android OEM seen as the alternative to Apple. They successfully got themselves in the door as the anti-Apple but since the S3/Note 2, they've been totally stagnant and focused more on marketing than their actual devices. Now the pressure is on to see if they can find something to make themselves standout again as marketing alone won't do it.
I personally don't think they can. I feel like this will be the new normal for them and their smartphone business will constitute a smaller percentage of their revenue. But we will see.
Their marketing campaign around the time the S3 was introduced was extremely successful and they managed to paint themselves as the Android alternative to the iPhone. They also brought the Note line which they were able to enjoy being unrivaled in for several years.
Fast forward to today and it's Samsung who's really having the innovation crunch that doomsayers always placed on Apple. On the low end you have Xiaomi and other such manufacturers making devices that are similar but far cheaper and crushing Samsung in China, India, and similar markets. Samsung has lowered prices to hold onto marketshare in those places but at the expense of profits.
In places like the US they are getting hammered by Apple on the high end. This 60% drop in Q3 doesn't even take into account most of the 6/6+ load. The Q4 numbers might be just as bad, if not worse once Apple hits their stride and supply begins to meet demand next month.
Samsung's main differentiating factor was the large screens. They were the Android OEM seen as the alternative to Apple. They successfully got themselves in the door as the anti-Apple but since the S3/Note 2, they've been totally stagnant and focused more on marketing than their actual devices. Now the pressure is on to see if they can find something to make themselves standout again as marketing alone won't do it.
I personally don't think they can. I feel like this will be the new normal for them and their smartphone business will constitute a smaller percentage of their revenue. But we will see.
Actually, I believe you are wrong here. HTC for example is still treading water, eeking out a marginal profit. Sales are not up from last year.
The real cause of the decline in profits is Lenovo, Huawei and Xiaomi all stealing Samsung's market share: http://www.prnewswire.com/news-rele...t-smartphone-vendor-in-q2-2014-269323561.html
So now Samsung is getting sympathy because their failure means Apple has no one to compete with? Can those of you defending Samsung tell us what kind of competition Samsung was for Apple, what kind of awesome smartphone technology Samsung invented that Apple had to copy? Did they push Apple towards bigger smartphones or that was just the way market was going? The what seems to be the start of a downfall for Samsung mobile market is karma doing it's work, this is a shady company that built it's smartphone business by copying, stealing, bullying and ugly advertising, it's only fair and i hope they get what they deserve as far as their smartphone business goes.
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So "the next big thing" already is gone again?
Seriously, besides the pathetic attempt of force-marketing a "next big thing"-thing (I know that they meant it partially tongue-in-cheek, but it still seemed cringeworthy) and the permanent comparisons with Apple, I wonder how much this all really has to do with Apple or if the market really is just saturated. Also I've noticed the tone on Android-themed message boards becoming very negative towards Samsung due to their controversial PR actions - paid forum posters*, reviewers*, questionable treatment of bloggers etc.
(*yeah, yeah... we know, "everyone does it" - great, that doesn't help Samsung who seems to be the one who always is being caught, right?)
Seriously, besides the pathetic attempt of force-marketing a "next big thing"-thing (I know that they meant it partially tongue-in-cheek, but it still seemed cringeworthy) and the permanent comparisons with Apple, I wonder how much this all really has to do with Apple or if the market really is just saturated. Also I've noticed the tone on Android-themed message boards becoming very negative towards Samsung due to their controversial PR actions - paid forum posters*, reviewers*, questionable treatment of bloggers etc.
(*yeah, yeah... we know, "everyone does it" - great, that doesn't help Samsung who seems to be the one who always is being caught, right?)
People at MacRumors need to get out of the mindset that for Apple to win Samsung has to lose. >_>
I'm not saying their ethical, but I wouldn't say evil. Recall the reports of Apple's manufacturing partners?
Explosions, exposure to toxic screen chemicals, etc. It's sad, but happens.
Samsung is hurting not because of their ads but because they can't add any value on top of Android (in my opinion they even remove value... but that is another issue) to justify their brand and their high end devices.
Android is the same everywhere and nowadays mid to low end is more that good enough for a good smartphone.
What is happening to Samsung is the same that hp faced and is facing.
This will also affect Apple but not as much. Apple is focused on the high end and in its major US market consumers aren't exposed to iPhone's true price. I suppose that if it wasn't for subsidization in time iPhone share would be similar to Mac share. And there's nothing wrong with that.
Android is the same everywhere and nowadays mid to low end is more that good enough for a good smartphone.
What is happening to Samsung is the same that hp faced and is facing.
This will also affect Apple but not as much. Apple is focused on the high end and in its major US market consumers aren't exposed to iPhone's true price. I suppose that if it wasn't for subsidization in time iPhone share would be similar to Mac share. And there's nothing wrong with that.
Feels a bit like empty rhetoric. Here's the chance to offer examples of Apple's dirty tricks so people don't think you are just trolling.
Samsung's mobile division profits continue to decline because they are not selling what the market wants, which is not a particularly keen observation. How much does this have to do with iPhone 6 anticipation / sales is speculation, though it's certainly possible. Not so speculative is the lower end of the market being taken by cheaper competitors. All this has been said much better in this thread.
I wonder if Apple would have built the larger iPhone if Samsung had not created the market (in the sense that Apple did not invent tablet but created market for tablets with iPad)? I am still on the fence as to whether I like a larger phone, but cannot deny the demand is there. One thing Apple has been good at is creating a demand for a products consumers were not aware they wanted. Samsung may deserve credit for doing the same in this particular case. Which has not saved Samsung from their current decline in their mobile division.
Always amazes me how people hate any competitor to the piece of tech they actually own. Competition is good.
Do people really think we would have a large screen iphone if not for Samsung and other competitors?
The headline of this article is silly since it suggest the iphone 6 is to blame even though it wasn't released during the period of low sales, and no one will convince me that everyone stopped buying samsung on a rumour of an upcoming iphone.
Do people really think we would have a large screen iphone if not for Samsung and other competitors?
The headline of this article is silly since it suggest the iphone 6 is to blame even though it wasn't released during the period of low sales, and no one will convince me that everyone stopped buying samsung on a rumour of an upcoming iphone.
What would you say about Samsung as a corporation and their "tribal" campaigns against Apple and their users? Not much different, IMO.
i had always thought this day would come. i never understood how samsung could sell so many crap handsets then it occured to me, people were DESPERATE for a large screen phone. never mind if its rubbish they just want their youtube to be 5 inches wide. now the best handset manufacturer wakes up on the right side of the bed after so long and boom! 4.7 and 5.5 in 1 release.
PAYPAL you can suck it and suck it deep. retards managing the company felt samsung was the best company to take mobile payments to the next level. you could have been big but you decided to tag along with the most scummy company on the planet.
/rant over
**no hate. i am using android but i hate samsung. ironic huh.
PAYPAL you can suck it and suck it deep. retards managing the company felt samsung was the best company to take mobile payments to the next level. you could have been big but you decided to tag along with the most scummy company on the planet.
/rant over
**no hate. i am using android but i hate samsung. ironic huh.
Just a nit pick really, but what is evil, if not doing something that goes against ethical conduct.
I bet alot of people did. This isnt the only time that this has happened.
When the iPhone was only on ATT, there was a move from verizon to ATT and when it was offered on Verizon, Samsung and Android phones on Verizon took a hit.
This really shouldn't be much of a surprise.
Yes this is very true. Samsung losing the battle to Chinese OEMs in the lower end market will only hurt Apple in the long run. Windows is not doing very well in the mobile industry hurts apple. this industry needs balance to have innovation