Samsung Profits Tumble as Apple Enters Large-Screen Phone Market and Low-End Options Thrive

[BaldiMac]

Always amazes me how people hate any competitor to the piece of tech they actually own. Competition is good.

Always amazes me how much people are amazed by empty stereotypes that they create in their own head.

Do people really think we would have a large screen iphone if not for Samsung and other competitors?

No, but we probably wouldn't have smartphones at all.

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,

No, it doesn't. It suggests that the iPhone 6 was released during the period of low sales. And that low-end options are thriving at the same time.

and no one will convince me that everyone stopped buying samsung on a rumour of an upcoming iphone.

Yeah, it's not like there are a ton of examples of consumers holding off buying a product because of anticipation of a future product.

Oh. Wait. Yes there is.

 

[batchtaster]

Good.

Competition (which I'm all for) is one thing. Being a bunch of dicks is something else altogether.

Bring on a competitor with a new idea or two, and even a little bit of class.

 

[neuropsychguy]

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

Thanks for the correction about HTC (the One M8 is a nice phone though). I forgot about the growth of those three Chinese companies. Huawei and Xiaomi are both companies people would do well to avoid for various reasons.

 

[Blackmane316]

People at MacRumors need to get out of the mindset that for Apple to win Samsung has to lose. >_>

Amen.

If Samsung goes down, then Xiaomi will step in, and they are one of the worst offenders of trying to race to the bottom first and make the smartphone a commodity space, something that Apple doesn't want.

 

[Moto G]

We are all deserving of forgiveness, and capable of changing our ways if we desire to do so. That includes Samsung. Complaining is fruitless and eats your time and energy - I hope they will change, but then none of us knows the top level executives personally, I'd think - so who are we to judge their top level management ethics and morals?

We can all change... including companies

 

[gugy]

marketing only works in the long term if you have a good product. apparently, Samsung only stole half of the formula from Apple.

Yep, I like competition and Samsung for the most part only copies Apple. Too bad. I wish they could really innovate and bring something to the table.
Consumers are intelligent people, over time they will pick the right product.

 

[bandrews]

People at MacRumors need to get out of the mindset that for Apple to win Samsung has to lose. >_>

In this race, Apple and Android are the jockeys, Samsung is just one of Android's horses. If Samsung breaks a leg and has to be shot, there's always Motorola, HTC, Sony etc for Android to ride. However none of them are in great financial shape.

Honestly, if I wanted to see one beat Apple it would be Motorola.

 

[Tycho24]

Apple should be worried also... the market is saturated, growth is slowing, technology is turning stagnant.

You Apple fans can celebrate today, but tomorrow it will be your turn to cut losses.

Mark my words.

Lol, Eeyore is that you???
I could almost hear the "oh bother".

 

[gugy]

Good.

Competition (which I'm all for) is one thing. Being a bunch of dicks is something else altogether.

Bring on a competitor with a new idea or two, and even a little bit of class.

My point all along.

 

[rhomsy]

Apple should be worried also... the market is saturated, growth is slowing, technology is turning stagnant.

You Apple fans can celebrate today, but tomorrow it will be your turn to cut losses.

Mark my words.

Although growth stagnation is inevitable, it may not slow or stagnate as you suggest with cell phones. Due to subsidy contracts in many parts of the world, most people feel compelled to buy a new phone every 24 months, or be forced to pay money to their provider toward a subsidy that they never use. Moreover, being a small mobile device that takes a beating, with a battery that has a lifespan, people have even more incentive to turn over their devices every few years. These forces suggest upgrades even in the face of slower technological development.

 

[polterbyte]

Well some people don't think that competition is a good thing for the consumer...

I, for one, believe competition is great.

Too bad Apple doesn't have any.

 

[elmateo487]

How so? You want Apple to have its competitors die off? I don't know about you but I'd rather have Apple be challenged by competitors; it will force Apple to innovate further as opposed to resting on their laurels.

While I agree with this.... I hate Samsung. I wish the competition was more like that of Microsoft and Apple

 

[Alenore]

PANG!

I said this before....there you go Samesung!

this is the main reason that bendgate went viral.

suck it Samesung!

So Samsung profit declines because Apple entered the phablet/large smartphone market... And "Same"sung still applies?

 

[Macist]

Picking up a Samsung is like driving a modern Kia - you're kind of impressed, it doesn't totally suck, a few things are nice and the price is right.

But it's not a Merc.

 

[BryanElliott]

Samsung is doomed.

 

[nia820]

this was expected. most people who started buying galaxy phones wanted a bigger screen. now that apple has fulfilled that need people are going back to iphones. Samsung is now going to add features that the average person is going to use instead of just gimmicky features that get old after a week.

As much as I loved my galaxy s4, i recognize it is not for the average consumer. Even though the iphone's features and specs are inferior to high end galaxy phones, apple plays it write by optimizing ios for iphones, making it user friendly and making the design sexy.

 

[brauliojr]

poor samsung..... hahahahaha

 

[batchtaster]

People at MacRumors need to get out of the mindset that for Apple to win Samsung has to lose. >_>

MR readers are simply reacting to Samsung long since having established that they regard the reverse to be true. It's not enough to sell great products and do very well for themselves - they have to go out of their way to try and take Apple down.

To change MR culture, you would first have to change Samsung. And that ain't gonna happen.

So my advice? Get used to it.

 

[osofast240sx]

In this race, Apple and Android are the jockeys, Samsung is just one of Android's horses. If Samsung breaks a leg and has to be shot, there's always Motorola, HTC, Sony etc for Android to ride. However none of them are in great financial shape.

Honestly, if I wanted to see one beat Apple it would be Motorola.

Technically no Samsung still has a ace up its sleeve, it has its own operating system it can still launch

 

[ericlmercer]

Apple should be worried also... the market is saturated, growth is slowing, technology is turning stagnant.

You Apple fans can celebrate today, but tomorrow it will be your turn to cut losses.

Mark my words.

LOL: "Mark my words"... Newsflash: no one will...

Hey, why don't you get that prophetic doom & gloom quote of yours tattooed across your chest to immortalize it for everyone...

Then someday you can show it off when you're like maybe 90 & Apple posts a bad quarter... your quote along with all your worthless Samsung penny stock certificates...

We'll even reserve that thread for you, so you can post to it using your brand-new 2050 Apple Siri-based Hearing Aid/Denture Wearables...

 

[fallenjt]

please dont tell me youre saying broncos = apple. apple would never allow themselves to get embarassed like last year

And neither Packers = Apple, they struggled the whole season without Rodgers, Apple didn't without Jobs.

 

[KPOM]

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.

Except that they make most of their profits from the Galaxy S and Galaxy Note lines. The low-end market where they dominate is largely a breakeven business. It helps keep the factories going but they need the S5 and Note 4 to do well. The S5 hasn't sold particularly well (and the S4 also slighly missed high expectations). Now the Note 4 has legitimate competition from the iPhone 6 Plus. So they are being squeezed on both ends.

 

[carjakester]

apple should make a commercial regarding the bend of samsungs profits.

 

[KPOM]

Technically no Samsung still has a ace up its sleeve, it has its own operating system it can still launch

It's already tried with Tizen. It hasn't gotten traction with smartphones at all, and Samsung has indicated it will switch back to Android Wear in future Gear models.

If Samsung announces a $5000 "Gear S Gold Edition" in 22kt white and rose gold, we'll know they've reached full desperation mode.

 

[HenryDJP]

Well deserving of Samsung. They've been trying to trash Apple so much lately and it's senseless because Apple is actually one of their customers that gets parts from them. Keep it classy Samsung, you trash a competitor's product who's indeed your own customer, you'll lose them as a customer soon enough......just as you've already lost customers to the new iPhone.
This definitely shows that Samsung had no competitive advantage other than a large screen and apparently that was all that was keeping people from buying an iPhone. Well so long Sammy. Android just isn't good enough to keep people away from the iPhone.