Samsung's mobile profits plunge 64.2% after Apple's iPhone 6 devastates premium Galaxy sales

[Victorious Secret]

As a former employee, good. Good on Samsung for having their profits plunge. Maybe they will spend more time making simply good devices (like the S2 and even S3 days) and less time making hipster ads that made me personally cringe at.

Samsung, and maybe to a lesser extent other Android makers, saturate the market way too much with way too many devices. IMO you need to have your "entry", "middle" and "high end" lines. Simplify everything. Why make 3 phones that overlap into each others territory for no reason? Why keep throwing crap at the features list to see what sticks? Its the same problem TV makers seem to have.

They've run out of ideas because they spent the previous cycle throwing EVERYTHING at the phone. Maybe hold back features that aren't crucial? Maybe refine those you already have? Maybe don't include random crap in the first place so you're not facing down model bloat?

Even when I worked at Samsung, the model bloat was insane. Different variations for every little region and nearly every carrier (at least in Canada). Things were absolutely ridiculous. The big problem for Samsung is that a lot of their profits come from the mobile sector now, so anything that says "we lost some money" is pretty horrific for the Korean based company.

Another problem I see, apart from the bloodbath they want to have with Apple in unit sales, is that Samsung is being squeezed hard by Android manufacturers who come up their blind spot with simpler products that simply captivate the masses more. The Zen Phone, or the M7/M8, or even the OPO and Xiaomi devices. Their middle and lower end game is getting torn apart by these guys and at the high end its anyones game, its just a game that Samsung isn't winning.

But I've said too much. I had these complaints during my employment there as well. Trying to do way too much and simply making way too much. It can't last forever, not at all.

EDIT: For those who wish to see the raw numbers, here is the report directly from Samsung courtesy of @mr moose http://www.samsung.com/us/aboutsamsung/ir/ireventpresentations/earningsrelease/downloads/2012/20150129_conference_eng.pdf

Apple's overall operating profits for the quarter were $24.2 billion, up 36.9 percent over the year ago quarter. That means Samsung Mobile is now earning less than 7.5 percent of Apple's profits while still shipping more phone units.

Apple's net (after tax) profits were $18 billion for the quarter, provisioning $6.4 billion for tax payments. Samsung reported just $230 million in income taxes, an effective tax rate of 4.5 percent.

Apple's effective tax rate is 26.4 percent. Apple pays so much more in taxes that some pundits in 2013 confusedApple's net income with Samsung's operational income, incorrectly reporting that Samsung had earned more than Apple.

Samsung still hasn't paid Apple the nearly $1 billion judgement it was ordered to pay back in 2012 for patent infringement. However, it reported a $4.79 billion drop in mobile profits last quarter and an additional $3.2 billion decrease in the winter quarter, meaning that $7.2 billion of Samsung's profits have vanished over just the last six months of 2014 compared the same period in 2013.

That was exaggerated into a 64.2 percent drop in mobile profits, because its lost sales where primarily among its higher end Galaxy S and Note product lines where it makes most of its profits.

That's a critical problem for the company because most of its profits have been coming from its IT & Mobile Communications (IM) group, which is roughly comparable to Apple's operations. Other divisions of Samsung Electronics include its CE group that sells TVs and appliances (which remained flat year-over-year) and its DS division that includes sales of display panels, semiconductors and memory components (up 4.2 percent over the year ago quarter).

http://appleinsider.com/articles/15/01/28/samsungs-mobile-profits-plunge-642-after-apples-iphone-6-devastates-premium-galaxy-sales

[XTankSlayerX]

Man... The Note 4 is amazing though... The S5 isn't amazing but not bad either... Wonder what they'll do next.

[Clyne]

Man... The Note 4 is amazing though... The S5 isn't amazing but not bad either... Wonder what they'll do next.

Note 3 is better

Samsung made a stupid decision to remove USB3.0 on the Note 4.

[Victorious Secret]

Man... The Note 4 is amazing though... The S5 isn't amazing but not bad either... Wonder what they'll do next.

 

Oh believe me, when I saw the Note 4 I approved of it entirely as I was in the "Big phones are the best" state of mind. The S5? I think my dad would like to smash it with a baby seal if he could, he has not been a fan. He in fact, got so fed up with the entire Samsung experience, he went and got a Passport. Yes. A bloody Blackberry. 

I'm biased (against them) overall. Their mobile division, their TV division. Ugh. What a freaking mess. 

 

[Guest]

500$ for a phone. Wow. They probably make those things about $30 a piece. (Iphone 6)

[Victorious Secret]

500$ for a phone. Wow. They probably make those things about $30 a piece. (Iphone 6)

 

200, actually. And off contract prices all these flagship phones come out to around the same prices, which is a problem for those who don't like contracts. On contracts however, 100-300 a pop for a 2 year term, which is why the off contract price isn't a big issue in North America since people still don't buy off contract like that. 

Maybe some people here don't remember, but I grew up in the days of a Blackberry Curve costing 599 Canadian dollars off contract. Yes. That phone. That miserable hunk of business plastic. 

[geforceftw]

Note 3 is better

Samsung made a stupid decision to remove USB3.0 on the Note 4.

I have the note 3 and use the usb 3 all the time, i love it. But i like the build quality of the note 4 better, but at least the note 3 doesn't bend like the note 4 does.

[Sidiox]

Well I can't say I mind too much. Samsung themselves have so many fucking phones, more then the entirity of the competition.

But I would have liked to see them do some new stuff, they had the money, so just try out stuff and see what sticks, that I wouldn't have minded

[XTankSlayerX]

Note 3 is better

Samsung made a stupid decision to remove USB3.0 on the Note 4.

If i'm going to have a hole. I want it to be pertty and uniform.

 

USB 3 Cables are the problem IMO.

 

They're not backwards compatible and not too many people are going to be using USB 3 Speeds anyways. 

 

 

 

I have the note 3 and use the usb 3 all the time, i love it. But i like the build quality of the note 4 better, but at least the note 3 doesn't bend like the note 4 does.

Becuase you're totaly going to have 70+ pounds of force on your phone in normal use. Bendy phones dont matter. If a phone can withstand 60+ Pounds of force then you wont bend it unless you want to.

[Clyne]

I have the note 3 and use the usb 3 all the time, i love it. But i like the build quality of the note 4 better, but at least the note 3 doesn't bend like the note 4 does.

I also have a Note 3 too, i find USB 3.0 handy because i always transfer photos from my phone to my PC and the 3.0 speed makes it transfer files faster.

[dadasmithywinkle]

500$ for a phone. Wow. They probably make those things about $30 a piece. (Iphone 6)

Actually, they're pretty much the same off contract. In the US, both the fully loaded Note 4 and the fully loaded iPhone 6 Plus are about $1,050 off contract. For the base iPhone 6 and Galaxy S5, it's $200 on contract. They're the same as far as pricing goes.

[Clyne]

If i'm going to have a hole. I want it to be pertty and uniform.

 

USB 3 Cables are the problem IMO.

 

They're not backwards compatible and not too many people are going to be using USB 3 Speeds anyways. 

*You now know 2 people who use USB 3

 

I have the note 3 and use the usb 3 all the time, i love it. But i like the build quality of the note 4 better, but at least the note 3 doesn't bend like the note 4 does.

[geforceftw]

Samsung is even losing market share to apple in Korea. Samsung needs to wake up, and hopefuly they're new "senior vice president of Samsung’s global design team" will help them get market share back and make more profits.

[ttam]

Seems made up by an Apple fan and since everything is from an Apple site...

 

Just texted a buddy who is the regional GM for t-mobile in my area and android phones out sold apple by 67% so... They seem to be doing great.

Also seems like some of you guys are making shit up. Can never take people on this forum serious anymore.

[Victorious Secret]

I also have a Note 3 too, i find USB 3.0 handy because i always transfer photos from my phone to my PC and the 3.0 speed makes it transfer files faster.

USB3 is very handy for fast file transfer especially when going from mSD to a SSD. Makes media management so much easier and faster.

If i'm going to have a hole. I want it to be pertty and uniform.

USB 3 Cables are the problem IMO.

They're not backwards compatible and not too many people are going to be using USB 3 Speeds anyways.

Becuase you're totaly going to have 70+ pounds of force on your phone in normal use. Bendy phones dont matter. If a phone can withstand 60+ Pounds of force then you wont bend it unless you want to.

1. Absolutely, the mobile implementation of SS was sloppy. I don't like that cable or connector on any level on any external device I own.

2. The bend issue is so overblown (thanks for nothing unboxing therapy). If my big phones are going to bend in real use, then wow I have some use issues. Cause everyone tries that hard to bend their phones in real life, right?

[geforceftw]

If i'm going to have a hole. I want it to be pertty and uniform.

 

USB 3 Cables are the problem IMO.

 

They're not backwards compatible and not too many people are going to be using USB 3 Speeds anyways. 

 

 

 

Becuase you're totaly going to have 70+ pounds of force on your phone in normal use. Bendy phones dont matter. If a phone can withstand 60+ Pounds of force then you wont bend it unless you want to.

I know it doesn't matter. I just think that it's kinda funny that the note 4 bent and not the note 3 on Lew's video (my theory is because the battery is designed differently). And i agree with you about micro usb 3 cable not being backwards compatible, we need type-C on all phones and tablets.

[Victorious Secret]

Seems made up by an Apple fan and since everything is from an Apple site...

Just texted a buddy who is the regional GM for t-mobile in my area and android phones out sold apple by 67% so... They seem to be doing great.

Yup, your buddy at some mobile carrier store knows more about a corporations sales than the VERY QUARTERLY RESULTS issued by said company.

[Clyne]

Just texted a buddy who is the regional GM for t-mobile in my area and android phones out sold apple by 67% so... They seem to be doing great.

True...i live around the same area as you and i find that there are more people using Android phones than iPhones.

[ttam]

Yup, your buddy at some mobile carrier store knows more about a corporations sales than the VERY QUARTERLY RESULTS issued by said company.

Regional GM as in a corporate job. Works for the HEADQUARTERS with a nice office here in Bellevue, WA.

[Victorious Secret]

Regional GM as in a corporate job. Works for the HEADQUARTERS with a nice office here in Bellevue, WA.

Once again, a regional GM for a carrier knows more about Samsungs quarterly results than Samsung themselves who send out these reports?

Is it so hard to accept that Samsung has been bleeding badly due to competition, regardless of what regional sales say? That region could be doing well and 10 others could be absolutely brutal.

[Victorious Secret]

Actually, they're pretty much the same off contract. In the US, both the fully loaded Note 4 and the fully loaded iPhone 6 Plus are about $1,050 off contract. For the base iPhone 6 and Galaxy S5, it's $200 on contract. They're the same as far as pricing goes.

It's pretty absurd what you'll pay off contract, unless your plan is like mine (unlimited everything @ 35 a month) then you're truly better off getting a contract.

I refuse to till they finally take this plan away, and even then ill adjust my data use to fit with another sub 50 dollar plan. I can't comprehend paying 100 or more a month to use my phone.

[ttam]

Once again, a regional GM for a carrier knows more about Samsungs quarterly results than Samsung themselves who send out these reports?

Is it so hard to accept that Samsung has been bleeding badly due to competition, regardless of what regional sales say? That region could be doing well and 10 others could be absolutely brutal.

Corporate job. This means he also gets to see what every store in the country does. His dad is also an executive vice president for TMO and I'm told Android is doing much better than Apple for TMO. So, I take the word of a long long friend over a bunch of AppleInsider reports that probably saw their info on Bing

[dadasmithywinkle]

It's pretty absurd what you'll pay off contract, unless your plan is like mine (unlimited everything @ 35 a month) then you're truly better off getting a contract.

I refuse to till they finally take this plan away, and even then ill adjust my data use to fit with another sub 50 dollar plan. I can't comprehend paying 100 or more a month to use my phone.

It's funny how a $20 nand chip rases the price of the device $100-$300 over the base model.

[Victorious Secret]

Corporate job. This means he also gets to see what every store in the country does. His dad is also an executive vice president for TMO and I'm told Android is doing much better than Apple for TMO. So, I take the word of a long long friend over a bunch of AppleInsider reports that probably saw their info on Bing

I'm sure your friend and dad are astronauts too, it's irrelevant to the discussion of SAMSUNGS financial results. You doubt these numbers? You can pull them from Samsung themselves if you wish.

This isn't some conspiracy against Android, this isn't what this thread is about at all. Jesus, why do people get so sensitive about these things? I didn't make a "DAE ANDROID IS SHITE!?" Topic. Did I? I simply made one referencing Samsungs failing with their mobile sales and the competition they specifically are facing and how it's eating their business.

If you want to take it off topic into some gerrymandering iOS v Android malarkey, do it elsewhere.

[xAcid9]

Android =/= Samsung