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

[Truefan31]

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

2014 is looking to be a disastrous year for Samsung mobile.

Yeah and I'm not even saying it's all Apple I understand they're pressed by other android oems. but people think its no big deal even though Samsung is shifting management and each quarter looks underwhelming. God forbid the iPhone even lose 10-20% and people here would think Apple is filing bankruptcy.

From OS X to iOS, iPhone to iPad to MacBooks and iMacs/Mac pros. Soon the watch, and the App Store /iTunes unifying everything, Apple is impressive as a business.

 

[I7guy]

Yeah and I'm not even saying it's all Apple I understand they're pressed by other android oems. but people think its no big deal even though Samsung is shifting management and each quarter looks underwhelming. God forbid the iPhone even lose 10-20% and people here would think Apple is filing bankruptcy.

From OS X to iOS, iPhone to iPad to MacBooks and iMacs/Mac pros. Soon the watch, and the App Store /iTunes unifying everything, Apple is impressive as a business.

10 to 20%? If Apple loses 1bp it's because, android, lousy software, bad hardware, etc.

 

[magicMac]

samsung do make some overpriced plastic crap though. If i wanted an android phone I would go with Sony, LG or Motorola.

 

[FFR]

samsung do make some overpriced plastic crap though. If i wanted an android phone I would go with Sony, LG or Motorola.

Your not the only one.
Which is the point of this thread.

 

[jamezr]

Mobile division of Samsung made up 2/3 (66%) of Samsung profits in Q3 2003. Since their mobile division's profit has been declining, its now around 2/5 (43%) of total profit as in Q3 2014.

http://www.samsung.com/us/aboutsams...se/downloads/2012/20141030_conference_eng.pdf

Wrong again!

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No idea what your talking about. There is a link in the bgr article that will take you to their source, Reuters.
Go back and see where you went wrong instead of falsely accusing members of fabricating metrics for jollies like some of the other posters in this thread:


http://mobile.reuters.com/article/idUSBRE9830BM20130904?irpc=932

"Shares in Asia's most valuable technology firm, which depends on mobile devices for two-thirds of its profit, have fallen 13 percent over the past three months. That compares with a 3 percent drop in the domestic stock market."

Here is the author of the article if you want to discuss veracities:

Reporting by Miyoung Kim
Editing by Ryan Woo

Nope you still wrong.......as pointed out that is not global sales.........
Still wrong......

 

[Truefan31]

Wrong again!

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Nope you still wrong.......as pointed out that is not global sales.........

Still wrong......

So are we wrong saying that losing 40% sales of your flagship phone is bad? Samsung is wrong for thinking its a big enough deal that they're shifting management?

 

[jamezr]

So are we wrong saying that losing 40% sales of your flagship phone is bad? Samsung is wrong for thinking its a big enough deal that they're shifting management?

huh...no did anyone say that? I am not sure about 40% sales. But they have not done as good as the past peak years. I hope they do shake up the top management. Why is that bad?

 

[FFR]

Wrong again!

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Nope you still wrong.......as pointed out that is not global sales.........

Still wrong......

Actually those do cover global sales for Samsung electronics, 2/3 of their global sales.

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So are we wrong saying that losing 40% sales of your flagship phone is bad? Samsung is wrong for thinking its a big enough deal that they're shifting management?

It's very bad....replace the top guy bad.

 

[jeremiah256]

At least Samsung and the rest aren't as dependent on phone sales.

This article from CNBC seems to contradict your statement about where Samsung's profits come from: "The mobile division now accounts for just 43 percent of operating profit, down from 76 percent in the first quarter."

Bottom line, Samsung mobile's current leadership screwed up, big time. Happens to all companies sooner or later. Big Samsung is stepping in to try and make corrections. How is that a bad thing?

 

[pdqgp]

Bottom line, Samsung mobile's current leadership screwed up, big time. Happens to all companies sooner or later. Big Samsung is stepping in to try and make corrections. How is that a bad thing?

They failed to plan how they were going to continue growth in spite of a market that is teaming with completion from China. Apple is not eating their share that's clear in the numbers. iOS market share isn't keeping pace with the market overall. That problem will eventually catch up with Apple. However, in the mean time investor wise, all Apple has to do is do better than they did last quarter, last year. Easier to do when it's just you completing with yourself.

What Samsung needed to do is figure out how they were going to do to compete at the lower end. They should have shored up that part of the business instead of worrying so much about the top end that they already owned. Their big problem is all the others, not Apple.

It's inevitable that their business will "normalize" in such a saturated market.

 

[lazard]

with the explosive growth of Xiaomi in China and India and the fact that all the android flagships are now pretty much equal, it's no surprise that their mobile division has suffered a giant setback.

 

[Arran]

. I hope they do shake up the top management. Why is that bad?

Because they lose momentum. In a rapidly evolving sector, that's bad. Really bad.

That, and it's an admission the current leader wasn't up to the job - which makes you wonder why he was in the job in the first place.

And that, in turn, sows all sorts of doubt about whether their corporate culture and governance is fundamentally healthy.

 

[sviato]

When the next quarter sales for the iPhone comes out and it shows that it dipped after the holiday quarter, I'll see what you post about it. Then, we can discuss more.

It's different because Apple already put out that it expects a dip in the quarter following the holidays. It's a matter of whether it will meet those expectations, whereas, in this case, Samsung set high expectations but under performed.

Yup, the tech literate (particularly people wanting the latest tech) won't purchase Apple's iPhone 6/6+. Alternatives, WRT phones, are so much better.

I work at a tech company and a lot of people have iPhones, and I've seen several 6/6+ floating around. I don't think tech literacy is as closely correlated with personal preference as you might think or hope

 

[jamezr]

Because they lose momentum. In a rapidly evolving sector, that's bad. Really bad.

That, and it's an admission the current leader wasn't up to the job - which makes you wonder why he was in the job in the first place.

And that, in turn, sows all sorts of doubt about whether their corporate culture and governance is fundamentally healthy.

Oh...Iike Apple when SJ passed?
Not all shake ups are bad..... Not all change of direction is bad.....Samsung is doomed!

 

[iososx]

I think the challenges currently facing Samsung will be a benefit in the long run. It's good for a company to experience the highs and lows of an ultra competitive market.

MBZ and BMW each faced a huge challenge when Lexus and Acura entered their market space. It's just the kick in the butt those two needed. Too comfortable with not much new and exciting, the luxury Japanese cars gave them a serious run for their money. Today all four of them offer excellent cars, lots of variety and the consumer wins.

Samsung will be just fine.

 

[Arran]

Oh...Iike Apple when SJ passed?

Nothing at all like that.

Samsung is doomed!

I wouldn't put it that melodramatically. But okay, if you say so.

 

[Arran]

I think the challenges currently facing Samsung will be a benefit in the long run. It's good for a company to experience the highs and lows of an ultra competitive market.

MBZ and BMW each faced a huge challenge when Lexus and Acura entered their market space. It's just the kick in the butt those two needed. Too comfortable with not much new and exciting, the luxury Japanese cars gave them a serious run for their money. Today all four of them offer excellent cars, lots of variety and the consumer wins.

Samsung will be just fine.

I believe you may be right. I've not been watching Samsung too closely, but it appears unfocused. Lots of "gee-whiz" features released in rapid succession but no coherent story. It reminds me of Windows CE early on: Much flash-and-sizzle, but zero follow-up. I got burned on CE several times. I know what I'm talking about.

Samsung taking a break from the frenzy may be a good thing. Provided they use their time wisely to figure out what customers actually need: The sort of planning and analysis that Apple excels at. They should try copying that.

 

[nj1266]

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.

Apple does not give a damn about market share. Apple is about profit share. Apple has a 5-7 percent of pc sales and yet dominates in profit share. The same is happening with iPhones. Apple has 11-13% market share but its profit share is well north of 70%. Samsung makes the rest of the profits in smartphones. All other hand set oems barely make any profit or are operating at a loss.

It is profits that allows a company to invest in r&d. Profits attract investors and stockholders. The fact is there are far too many phone makers in the market. Moving forward, they either need to show a profit or exit the market.

 

[nj1266]

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

They aren't doing anything wrong. There just happen to be tons of choices, many of which cost less and offer just as much. Put iOS out there on other platforms and the iPhone hardware would likely see the exact same outcome.

Imagine what would happen to Apple Branded device sales if you put iOS on platforms that are available for $100-$300. Moto X, Sony, LG, and a few low end China Brands.....

And that is precisely the problem with the android model. Too many manufacturers and nobody controls their own software. All they do is add meaningless and pointless skin to there models to differentiate themselves from others. By contrast Apple controls the hardware and the software.

What will happen overtime is that these companies Will cannibalize each other and the average selling price of Android phones will keep going down.

This happened before in the PC market. The smart phone market would like to be a replay of the PC market.

 

[Oletros]

And that is precisely the problem with the android model. Too many manufacturers and nobody controls their own software. All they do is add meaningless and pointless skin to there models to differentiate themselves from others. By contrast Apple controls the hardware and the software.

What will happen overtime is that these companies Will cannibalize each other and the average selling price of Android phones will keep going down.

This happened before in the PC market. The smart phone market would like to be a replay of the PC market.

And exactly where is the problem? Apart of your oversimplification of what OEM's do

 

[nj1266]

And exactly where is the problem? Apart of your oversimplification of what OEM's do

The problem is we have seen this before in the PC industry and it does not end well for PC makers. IBM sold its PC unit, Dell has gone private. Most of the PCI makers do not make a profit even though some have great market share. When there is not much profit, there is not much innovation and the industry stagnates and companies leave the market.

It is very probable that the Android market will follow the PCI market. Already we see a continued decline in the ASP of Android branded phones. If that keeps up, the profits dry up and companies will exit the market. Recently, only Samsung out of all Android handset makers was making a profit. At some point other OEMs must either make a profit or leave the market.

The Android market model might not be sustainable in the long term just like the PC model before it.

 

[Oletros]

The problem is we have seen this before in the PC industry and it does not end well for PC makers. IBM sold its PC unit, Dell has gone private. Most of the PCI makers do not make a profit even though some have great market share. When there is not much profit, there is not much innovation and the industry stagnates and companies leave the market.

It is very probable that the Android market will follow the PCI market. Already we see a continued decline in the ASP of Android branded phones. If that keeps up, the profits dry up and companies will exit the market. Recently, only Samsung out of all Android handset makers was making a profit. At some point other OEMs must either make a profit or leave the market.

The Android market model might not be sustainable in the long term just like the PC model before it.

Really? The PC market is not sustainable? Wishful thinking too much?

 

[nj1266]

The PC market is a shadow of its former self and it is in continuous decline. It has the same dynamics as the Android market. One company makes the software (Microsoft) and other companies make the hardware and there is little to no optimization between the two.

"Gartner analyst Mikako Kitagawa tells MarketWatch that PC sales sagged to 316 million units overall, and 82.6 million units in the fourth quarter of 2013. Q4 represented the seventh-straight quarter of decreasing sales."

http://www.forbes.com/sites/jasonev...resented-worst-decline-in-pc-markets-history/

 

[The Game 161]

The comp is alot better now and that's not even apple. It's all the other top android phones.

Apple has a cult so no matter how bad the upgrade it could be apple will always sell more flagships ..that won't change

 

[Oletros]

The PC market is a shadow of its former self and it is in continuous decline. It has the same dynamics as the Android market. One company makes the software (Microsoft) and other companies make the hardware and there is little to no optimization between the two.

"Gartner analyst Mikako Kitagawa tells MarketWatch that PC sales sagged to 316 million units overall, and 82.6 million units in the fourth quarter of 2013. Q4 represented the seventh-straight quarter of decreasing sales."

http://www.forbes.com/sites/jasonev...resented-worst-decline-in-pc-markets-history/

First, that link doesn't say that the market is unsustainable as you said and in the case of smartphone market is just the contrary of that, it is still growing so I still don't understand your claims, you contradict yourself