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Samsung's Mobile Business Sees Major Profit Drop Following iPhone 6 Launch

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During its Wednesday earnings call, Apple rival Samsung Electronics reported net profit of 4.63 trillion won ($4.35 billion) for the January to March quarter, a 39% drop from its net profit of 7.49 trillion won in the year ago quarter. A sizable portion of the lost profit came from Samsung's mobile division, which brought in 2.74 trillion won ($2.5 billion) in the first quarter of 2015, vs. 6.43 trillion won in the first quarter of 2014.

Despite the year over year profit loss, Samsung's earnings release highlighted its quarter over quarter improvement and pointed towards increased sales of middle-end smartphones including the Galaxy A series. Samsung doesn't divulge its smartphone sales, but analysts believe the company sold 83.2 million smartphones during the quarter, compared to Apple's 61.2 million.

iphone6-stock.jpg
The high number of sales let Samsung regain its title of the worlds largest smartphone maker, but many of those sales were for lower-priced phones and not flagship devices, causing it to lose profit year over year. Much of Samsung's profit loss can be attributed to the introduction of the iPhone 6 and 6 Plus, letting Apple devices compete with Samsung devices on screen size for the first time.

Ahead of the launch of the two larger-screened iPhones, big screens were a feature that set Samsung devices apart from iPhones and drew customers for the South Korean company, but with the iPhone 6 and the 6 Plus, Samsung has lost some of its grasp on customers seeking devices with bigger displays.

Samsung expects its profits to increase during the second quarter following the global launch of the company's new Galaxy S6 and S6 Edge and on the strength of its semiconductor business. According to Samsung, demand for its curved S6 Edge has been high, but limited supplies have restricted sales.

Article Link: Samsung's Mobile Business Sees Major Profit Drop Following iPhone 6 Launch
 
Article Link
https://www.macrumors.com/2015/04/29/samsung-mobile-profit-drop-iphone-6/
iPhone has big screen options now. Galaxy no longer has replaceable battery or expandable storage. Time to watch iPhone gain even more switchers.
 
This is good and not because I don't like Samsung it's good because they will have to innovate more and then apple will have to as well.
 
Sell more phones and make less money.

That's what happens when you sell a lot of cheap phones with BOGO promotions.
 
Yeah, Samusng innovates by putting someone else's OS on their phones. They still ship more phones, but that doesn't mean a hill of beans because their profit is down significantly YoY.

And profit is where it matters to business owners. And people have no idea what the word "innovation" means. Putting a 3G/4G cellular radio in a tablet isn't innovative.

And as for quoting Android websites to prove your point... fail. Innovation isn't opening a new plant. Wow.
 
"Apple is doomed!"

;)

It makes sense though, people wanted a bigger screened iPhone, it's here, so naturally people switched or switched back.
 
applesith said:
iPhone has big screen options now. Galaxy no longer has replaceable battery or expandable storage. Time to watch iPhone gain even more switchers.
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Pretty much this, except the replaceable battery and expandable storage. Regular people don't care about that stuff.

But the big screen options are covered quite well by iPhone.

And let's face it, regular people don't want to pay a premium price for a Samsung.
 
Kojemica said:
no, profit is all that matters to apple.

innovation matters plenty to other companies who are making actual strides and doing different things.
Click to expand...

Profit matters to Samsung too, they're just not good at it. Samsung couldn't innovate themselves out of a paper bag.
 
shyam09 said:
I believe the whole screen on the edge was Sammy's thing.
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Which is enormously useful from what I can tell. You know, cause when you have a full screen in front of you, you want to look at a tiny screen on the edge.
 
ninjadex said:
Pretty much this, except the replaceable battery and expandable storage. Regular people don't care about that stuff.

But the big screen options are covered quite well by iPhone.

And let's face it, regular people don't want to pay a premium price for a Samsung.
Click to expand...
Sorry you seem to have used the word "Samsung" instead of "Apple" for some reason when you mentioned "premium price" ... Sorry but when a person talks about premium price, only one company can be named for going above and beyond - Apple.

EDIT: yeah this one's on me. Misinterpreted your post.
 
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Samsung are the biggest hypocrites of any tech company and are tacky and classless. They fuel the bend campaign on the iPhone 6 Plus because of it's thinness. They create the Wall Huggers ad campaign to diss Apple for using built in battery and Voila! A new S6 is born and is a nothing short of a poor copycat of the iPhone 6 Plus. Karma Sammy. That's why your profits are down and people aren't wasting money on your overpriced Apple clone.
 
kcirtap00 said:
Which is enormously useful from what I can tell. You know, cause when you have a full screen in front of you, you want to look at a tiny screen on the edge.
Click to expand...
It doesn't matter. Innovation is still there.
 
shyam09 said:
Do iPhone users still believe that they carry the "most advanced mobile operating system" in their pockets?
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How is this related? "Most advanced operating system" is a marketing slogan. Android OEM manufacturers fudging benchmark tests is obfuscation, especially when a year old A7 processor will run circles around a multi-core ARM processor in many cases. Nice Red Herring though.
 
kcirtap00 said:
Which is enormously useful from what I can tell. You know, cause when you have a full screen in front of you, you want to look at a tiny screen on the edge.
Click to expand...

Actually the Note Edge, even though may seem like a gimmick, is quite useful in many instances. Too bad it's on the right side of the phone and being left hand holding user, it was difficult to use.

For a lot of my right hand holding friends, seem to work great for them.
 
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alphaod said:
...
Actually the Note Edge, even though may seem like a gimmick, is quite useful in many instances. Too bad it's on the right side of the phone and being left hand holding user, it was difficult to use.

For a lot of my right hand holding friends, seem to work great for them.
Click to expand...

You're holding it wrong.
 
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