Galaxy S5 sold 40 percent fewer units than Samsung predicted: WSJ

[Truefan31]

What is gleaming is that Samsung sells way more phones overall and at least has devices covering the full spectrum from low to high priced devices. Apple does not. It's also clear that Samsung isn't losing share to Apple but rather the others in their space. So while Apple is enjoying the iP6 sales, it's not taking them from Samsung. At least the market share data isn't showing it. The market share is however showing the lower end devices are where it's at. And they can and are profitable areas too.

What also shows through is that the two big boys still don't own the other 50% or so of the market that is going to other manufacturers. Samsung however is poised better than Apple to get that. Not only from a production and product standpoint, but also since those low end phones are Androids, not iOS. Thus if you're not making a lower price point Android phone, you're not likely even going to have much of a shot. The second chart of operating system market share is pretty telling.

In the end, I could care less how many phones any manufacturer sells. I buy a platform not a brand of hardware. Android is killing it world wide and gaining ground in the US too. That to me says a lot. And IMO it's a far better more customizable platform overall.

Apple is doing well, but nearly 50% of their revenue comes from the iPhone. That's scarey. Especially when you look at the slide the iPad has taken over the past year. At least Samsung and the rest aren't as dependent on phone sales. Again, enjoy the iPhone sales but beware, the Android OS demand and growth is not letting up nor leaving much room for iOS which is shrinking and clearly not taking any share from Android.

Personally, I'm very happy with my Note 3 and have no interest in upgrading to the Note 4. Perhaps the 5; but even then, it will be interesting to see what the competition in the Android space offers in late 2015.

Operating System Market share:

Uh doesn't Samsung get over 50% of their profit from their mobile division too? So their flagship phone losing 40% sales from last year is a pretty big deal.

I know people hate apple but their business model is pretty impressive. One that others try to copy. They just released a big iPhone now too. Give it a couple years they'll really start digging into more market share.

 

[jamezr]

Uh doesn't Samsung get over 50% of their profit from their mobile division too? So their flagship phone losing 40% sales from last year is a pretty big deal.

I know people hate apple but their business model is pretty impressive. One that others try to copy. They just released a big iPhone now too. Give it a couple years they'll really start digging into more market share.

Uh a couple of years is an eternity in this space. The whole market could change in that time.

 

[pdqgp]

Uh doesn't Samsung get over 50% of their profit from their mobile division too? So their flagship phone losing 40% sales from last year is a pretty big deal.

Revenue perhaps, but not profits. Samsung has a huge profit center in the fact that they are an OEM to many and actually own the factories themselves. Thus while revenue from their Mobile center (1 of 4 lines of business for them) is about 1/3 of their company, it's not the most profitable area. I never worked for them, but I did work for Panasonic for years and they too consolidated 14 lines of business (domains) and had a very profitable OEM side. I'm pretty certain Samsung functions much like their counterparts in Japan.

Keep in mind, the fact that they are controlling the manufacturing much more so than others who out-source products helps them immensely. Not only from a scaling standpoint but from a cost standpoint. The key for Samsung and a viable reason they will be just fine as they re-tool their lineup is that they control that capability. They are big ship, but they control the steering of it too. OEM technology pays for a lot of things....including the design and development of so many of their devices. Thus why Samsung is so easily producing a slew of 30+ phone designs. They will likely scale that back to compete more effectively with the Chinese. Again, it's not Apple that's eating into Samsungs Market share. It's all the others.

I know people hate apple but their business model is pretty impressive. One that others try to copy. They just released a big iPhone now too. Give it a couple years they'll really start digging into more market share.

Same for Samsung. Thus why Apple is trying to move to controlling more of their materials and manufacturing of their devices. Sure in a couple years they will make progress, but it's way too early to claim market share for anyone at this point.

----------

Uh a couple of years is an eternity in this space. The whole market could change in that time.

^^ this. 12 months in 2014 is like a decade was in the 80's. Even not even multiple decades.

 

[FFR]

Galaxy S5 sold 40 percent fewer units than Samsung predicted: WSJ

Uh doesn't Samsung get over 50% of their profit from their mobile division too? So their flagship phone losing 40% sales from last year is a pretty big deal.

I know people hate apple but their business model is pretty impressive. One that others try to copy. They just released a big iPhone now too. Give it a couple years they'll really start digging into more market share.

Actually over 2/3 profits is from mobile.

"Several factors have led to this dip, disappointing sales of the Galaxy S4 chief among them. Reuters mentions that mobile sales make up two-thirds of Samsung’s profits, so investors’ doubts are understandable."

http://bgr.com/2013/09/04/samsung-galaxy-s4-sales/

 

[pdqgp]

Actually over 2/3 profits is from mobile. [/url]

waiting on your source....

 

[FFR]

Galaxy S5 sold 40 percent fewer units than Samsung predicted: WSJ

Revenue perhaps, but not profits. Samsung has a huge profit center in the fact that they are an OEM to many and actually own the factories themselves. Thus while revenue from their Mobile center (1 of 4 lines of business for them) is about 1/3 of their company, it's not the most profitable area. I never worked for them, but I did work for Panasonic for years and they too consolidated 14 lines of business (domains) and had a very profitable OEM side. I'm pretty certain Samsung functions much like their counterparts in Japan.

Keep in mind, the fact that they are controlling the manufacturing much more so than others who out-source products helps them immensely. Not only from a scaling standpoint but from a cost standpoint. The key for Samsung and a viable reason they will be just fine as they re-tool their lineup is that they control that capability. They are big ship, but they control the steering of it too. OEM technology pays for a lot of things....including the design and development of so many of their devices. Thus why Samsung is so easily producing a slew of 30+ phone designs. They will likely scale that back to compete more effectively with the Chinese. Again, it's not Apple that's eating into Samsungs Market share. It's all the others.



Same for Samsung. Thus why Apple is trying to move to controlling more of their materials and manufacturing of their devices. Sure in a couple years they will make progress, but it's way too early to claim market share for anyone at this point.

----------





^^ this. 12 months in 2014 is like a decade was in the 80's. Even not even multiple decades.

Please don't just make things up.

Because Samsung supplies most of their own components, unsold inventory hits them twice as hard.

----------

waiting on your source....

I provided the source and gave a link in my original post.

You conveniently deleted it when you quoted me.

 

[Truefan31]

Galaxy S5 sold 40 percent fewer units than Samsung predicted: WSJ

Revenue perhaps, but not profits. Samsung has a huge profit center in the fact that they are an OEM to many and actually own the factories themselves. Thus while revenue from their Mobile center (1 of 4 lines of business for them) is about 1/3 of their company, it's not the most profitable area. I never worked for them, but I did work for Panasonic for years and they too consolidated 14 lines of business (domains) and had a very profitable OEM side. I'm pretty certain Samsung functions much like their counterparts in Japan.

Keep in mind, the fact that they are controlling the manufacturing much more so than others who out-source products helps them immensely. Not only from a scaling standpoint but from a cost standpoint. The key for Samsung and a viable reason they will be just fine as they re-tool their lineup is that they control that capability. They are big ship, but they control the steering of it too. OEM technology pays for a lot of things....including the design and development of so many of their devices. Thus why Samsung is so easily producing a slew of 30+ phone designs. They will likely scale that back to compete more effectively with the Chinese. Again, it's not Apple that's eating into Samsungs Market share. It's all the others.



Same for Samsung. Thus why Apple is trying to move to controlling more of their materials and manufacturing of their devices. Sure in a couple years they will make progress, but it's way too early to claim market share for anyone at this point.

----------





^^ this. 12 months in 2014 is like a decade was in the 80's. Even not even multiple decades.

Yeah it's been shown its like 2/3 of samsungs profit. Samsung doesn't even make a os. I get that they do a lot of different things but it's evident they rely on mobile just as much as Apple. Maybe more.

I understand 12 months is a long time but I think Apple will continue to grow like they've done the last several years. If Apple had a 40% drop in iPhone sales there'd be people calling for the end of Apple.

 

[jamezr]

Please don't just make things up.

Because Samsung supplies most of their own components, unsold inventory hits them twice as hard.

----------




I provided the source and gave a link in my original post.

You conveniently deleted it when you quoted me.

I'll bet he quoted you before you were finished with your post......

It looks like most OEMs have peaks and valleys for operating profit.

 

[FFR]

Galaxy S5 sold 40 percent fewer units than Samsung predicted: WSJ

I'll bet he quoted you before you were finished with your post......



It looks like most OEMs have peaks and valleys for operating profit.



Image

Except he deleted it from the quote.

That's why we use yoy for analysis not qoq.
if we look at Apple's fiscal quarter year over year, it's not peaks and valleys, neither was Samsung's prior to the quarter.

And that's a chart for profit value share by oems,
What does that have to do with mobile making up 2/3s of samsung's profits or the s5s faltering sales having a material impact on samsung's bottom line?

 

[Truefan31]

waiting on your source....

He gave u one.

 

[mi7chy]

Samsung global is heavily diversified in products from mobile to PC, appliances, construction, military, cameras, healthcare, LTE base station, SSD/DRAM/SoC/sensors, etc. so they're much better off than Apple who's strictly mobile and PC only. It's Apple's low end iPhones 6/6+ that will be cannibalized by the Xiaomi, Opo/OnePlus, etc. Apple is like another Dell and look how irrelevant Dell is these days.

 

[Technarchy]

The S5 is a very good product but i think it comes across as a bit bland. It's very solid at everything it does without pushing boundaries.

I don't think the S5 itself is the problem, but rather Samsung's business model.

For example, Samsung is actually less agile and able to deal with weaker demand because it has a dozen other models slotting in under the S5. The spray and pray business model means they can just add rebates and incentives, or cost cutting on the S5, because it then impacts the models under the S5, of which there is A LOT.

Had Samsung just stuck with, say, 4 phones rather than 50, they would be better able to deal with this problem, and yes this is a big problem. The S5 is their flagship phone, and taking a 40% hit is no small potatoes.

Personally I like my S5, and think it's their best phone yet, but obviously the market doesn't agree.

----------

Samsung global is heavily diversified in products from mobile to PC, appliances, construction, military, cameras, healthcare, LTE base station, SSD/DRAM/SoC/sensors, etc. so they're much better off than Apple who's strictly mobile and PC only. It's Apple's low end iPhones 6/6+ that will be cannibalized by the Xiaomi, Opo/OnePlus, etc. Apple is like another Dell and look how irrelevant Dell is these days.

Good luck with that theory

 

[Truefan31]

Samsung global is heavily diversified in products from mobile to PC, appliances, construction, military, cameras, healthcare, LTE base station, SSD/DRAM/SoC/sensors, etc. so they're much better off than Apple who's strictly mobile and PC only. Apple is like another Dell and look how irrelevant Dell is these days.

You really show your bias here.

And yet it's been shown Samsung get 2/3 of their profit from mobile. And their flagship had a 40% drop in sales.

Not saying Apple is more diversified than Samsung but saying they're dell is ignorant. They do hardware and software. They have theyre own App Store too

 

[mi7chy]

Personally I like my S5, and think it's their best phone yet, but obviously the market doesn't agree.

S5 isn't their best phone. Note 4 is but I'll probably wait for Note 5 because even 2012 Note II is better with 2GB DRAM, precision pen, AMOLED and a more advanced OS than iPhone 6+.

 

[Truefan31]

S5 isn't their best phone. Note 4 is but I'll probably wait for Note 5 because even 2012 Note II is better with 2GB DRAM, precision pen, AMOLED and a more advanced OS than iPhone 6+.

And yet they can't sell more than the iPhone. Go figure. Samsung must be doing something wrong

 

[FFR]

I don't think the S5 itself is the problem, but rather Samsung's business model.



For example, Samsung is actually less agile and able to deal with weaker demand because it has a dozen other models slotting in under the S5. The spray and pray business model means they can just add rebates and incentives, or cost cutting on the S5, because it then impacts the models under the S5, of which there is A LOT.



Had Samsung just stuck with, say, 4 phones rather than 50, they would be better able to deal with this problem, and yes this is a big problem. The S5 is their flagship phone, and taking a 40% hit is no small potatoes.



Personally I like my S5, and think it's their best phone yet, but obviously the market doesn't agree.

----------





Good luck with that theory



Image

Hahaha.
That's hilarious. He really doesn't know what he is talking about

 

[jamezr]

Except he deleted it from the quote.

That's why we use yoy for analysis not qoq.
if we look at Apple's fiscal quarter year over year, it's not peaks and valleys, neither was Samsung's prior to the quarter.

And that's a chart for profit value share by oems,
What does that have to do with mobile making up 2/3s of samsung's profits or the s5s faltering sales having a material impact on samsung's bottom line?

The article is from 2013 and about sales of the S4......not relevant today and the thread topic of the S5
Then that article from BGR is from over a year ago....then your ascertation that 2/3s of samsung's profits come frommobile is false. Did you read the articles?
Here it is for you....They talk about the mobile phone space. Not the companies profit from the mobile phone space. They NEVER mention total company profit at all or how much of it from from the mobile space.
Stop making things up.....

According to data from Canaccord Genuity, Apple and Samsung managed to capture 100% of the mobile industry’s profits last quarter. In the first quarter of 2013, Apple took home 57% of the global smartphone industry’s profits, while Samsung grabbed almost 43% to leave nothing for BlackBerry, Nokia or HTC. In fact, the only company that managed a mobile profit share above 0% was LG with its 1% share. Even at nearly 100%, however, Apple and Samsung’s share of mobile profit has actually declined from last year. The research firm previously reported that the two companies captured 103% of handset industry profits in 2012.

http://bgr.com/2013/05/07/apple-samsung-smartphone-profit-q1-2013/

 

[pdqgp]

stay tuned

 

[mi7chy]

They do hardware and software. They have theyre own App Store too

Apple is just a brand. They don't manufacture any hardware but buy from Samsung and others and have others assemble it for them just like Dell. I wouldn't call Apple a software company either. Just look at the Apple maps disaster and how buggy and laggy iOS 8.x is. They're better off buying and rebranding Samsung devices and Google Android as iOS 10. Technically Apple devices are Samsung products underneath considering how many components are Samsung from display, SoC, flash memory/SSD, DRAM, etc.

 

[gotluck]

Apple is just a brand. They don't manufacture any hardware but buy from Samsung and others and have others assemble it for them just like Dell. I wouldn't call Apple a software company either. Just look at the Apple maps disaster and how buggy and laggy iOS 8.x is. They're better off buying and rebranding Samsung devices and Google Android as iOS 10. Technically Apple devices are Samsung products underneath considering how many components are Samsung from display, SoC, flash memory/SSD, DRAM, etc.

the A series soc's are masterpieces though, I wish we could get them in android phones

 

[mi7chy]

the A series soc's are masterpieces though, I wish we could get them in android phones

Not from my experience. Useless synthetic benchmarks do not equate to real world use.

http://youtu.be/rGTQAYHfc8U

 

[FFR]

The article is from 2013 and about sales of the S4......not relevant today and the thread topic of the S5
Then that article from BGR is from over a year ago....then your ascertation that 2/3s of samsung's profits come frommobile is false. Did you read the articles?
Here it is for you....They talk about the mobile phone space. Not the companies profit from the mobile phone space. They NEVER mention total company profit at all or how much of it from from the mobile space.
Stop making things up.....



http://bgr.com/2013/05/07/apple-samsung-smartphone-profit-q1-2013/

Articles?
Your article is from May 2013 when as the one I cite is from September 2013.

Actually over 2/3 profits is from mobile.

"Several factors have led to this dip, disappointing sales of the Galaxy S4 chief among them. Reuters mentions that mobile sales make up two-thirds of Samsung’s profits, so investors’ doubts are understandable."

http://bgr.com/2013/09/04/samsung-galaxy-s4-sales/

Here is the quote and link from my original post which is more currant than the link you provided.

 

[gotluck]

Not from my experience. Useless synthetic benchmarks do not equate to real world use.

http://youtu.be/rGTQAYHfc8U

that looks like a software problem to me

I cringe when you say that because that's the same line the ios faithful have used in defense when qualcomm soc's were topping the charts.

 

[FFR]

Not from my experience. Useless synthetic benchmarks do not equate to real world use.

http://youtu.be/rGTQAYHfc8U

How old is your iPad?

 

[jamezr]

Articles?
Your article is from May 2013 when as the one I cite is from September 2013.




Here is the quote and link from my original post which is more currant than the link you provided.

Please go back and read the article. Please post you SOURCE for mobile making up 2/3s of samsung's profits. Because it is not in the article you listed. BUT there is a supposed link in your article and that is what i posted an excerpt from.

So sources please.......