Posted by difenbaker
Samsung's struggle: profits to slide again as smartphones miss out to rivals
South Korean tech giant to record fourth consecutive quarter of falling profits
Analysts said rising memory chip and semiconductor prices were likely behind Samsung's impressive profit estimation.
Samsung's smartphones are losing market share to Apple at the higher end and to low-cost brands such as Lenovo at the lower end
By Reuters
7:03AM BST 07 Oct 2014
Samsung is heading for its first annual earnings drop since 2011 after it revealed its July-September profit would be the lowest in more than three years and said short-term prospects for smartphones were uncertain.
The world's smartphone leader has seen its global market share decline in annual terms for the past two quarters, according to Strategy Analytics, out-classed by Apple's iPhones in the premium segment and undercut by Chinese rivals like Lenovo and Xiaomi at the bottom end.
Even so, Samsung's shares jumped 1.2pc overnight, reflecting expectations that the company's profits have bottomed and will pick up with the launch of cheaper smartphone models in the months ahead.
"Considering the operating profit guidance, it looks like the company dealt with unsold inventory issues during the third quarter," Alpha Asset Management fund manager Hong Jeong-woong said. "I think Samsung's earnings are at a turning point."
Samsung said in a regulatory filing on Tuesday that operating profit for the third quarter likely fell 59.7pc to 4.1 trillion won (£2.4bn), well below analysts' expectations of around 5.6 trillion won.
continued;
http://www.telegraph.co.uk/fi[....]phones-miss-out-to-rivals.html
https://gigaom.com/2014/10/07[....]-60-profit-drop-as-sales-slow/
http://www.t3.com/news/samsun[....]-will-fall-60-for-q3-this-year
http://www.mcvuk.com/news/rea[....]-operating-profit-drop/0139467
Samsung promises new phones but faces a battle on two fronts
http://www.zdnet.com/samsung-[....]ttle-on-two-fronts-7000034419/
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[ This Message was edited by: difenbaker on 2014-10-07 20:47 ]
Posted by aussieland1
Unless I am missing something it is not a loss but a big drop in profit compared to last year. Title of the thread is misleading!
Posted by difenbaker
On 2014-10-07 18:38:52, aussieland1 wrote:
Unless I am missing something it is not a loss but a big drop in profit compared to last year. Title of the thread is misleading!
Thanks for the headsup... title is now corrected.
I was thinking its a loss... Or rather a 'loss in profits', which is still technically a "loss".
But you're right, it was misleading....thanks for pointing it out.
cheers!
[ This Message was edited by: difenbaker on 2014-10-07 21:10 ]
Posted by hihihans
Less profit is considered a loss for a lot of investors, they might think it's the beginning of the end.
Posted by Bonovox
Samsung still making massive profits anyway it's just others gaining market share
Posted by Tsepz_GP
Sales of devices up BUT average selling price down, and heavy marketing spend = the profit drop.
[ This Message was edited by: Tsepz_GP on 2014-10-08 04:59 ]
Posted by aussieland1
It must mean that S5 is not selling as well as expected . Maybe Samsung will learn from this and not get complacent when it will come to S6
Posted by etaab
When did they become complacent ?
I think companies like HTC, LG and Sony getting more up to Samsung's speed take some of their sales. But that's good for us as customers to have a choice rather than predictably having to get a Samsung or lose many functions or features.
Posted by aussieland1
In my opinion they became complacent with the S5- very similar design with S4,s3, same camera , similar screen - not much break through . I think they are on the right track with Alpha and Note 4 though
Posted by Ranjith
Yea..Competitors have risen up in the past year or so with great devices.I guess all SAMSUNG need is an All-New design to get back some more attention.
Posted by Bonovox
@aussieland your very wrong on the Galaxy camera comment. The S3 8mp,S4 13mp and S5 16mp ISOCELL camera with 4K video. How's that not changing the camera?? Sony have stayed with the same 20mp shooter for a while now
Posted by aussieland1
@ Bonovox
Fair enough i have made a mistake about the camera- i still think S5 as a whole was not innovative enough- and maybe thats part of the reason why it is not selling as good as expected
Posted by Bonovox
Yeah but it's still probably sold more alone than Sony as a whole
Posted by etaab
I disagree completely with the complacent comment regarding the S5.
The S4 if anything was the complacent phone. Look at it, to this day I struggle to tell from the front whether im looking at an S3 or an S4.
The S5 is so much better looking than the S3 and S4 before it. Its almost a return back to the S2 design, which I welcome greatly. Also, with a new version of Touchwhiz with many more functions and features over the S4 illustrates the gap much more. I never felt like digging deep to upgrade my S3 to an S4, it just wasn't worth it. But the S5 is a great upgrade and a fantastic phone. It has a brilliant camera also, the first Samsung camera I actually like. Also, the battery never seems to run out.
And now, the Note 4 looks even better. If they follow the same vein with the S6 next year, that will be a damned good design and phone.
Posted by aussieland1
sorry but I found the comment about the s5 design being better looking than s3 and especially s4 hilarious. Anyway as we are all entitled to our opinion and we are clearly of very different opinion lets just agree to disagree.
I will just say this - if s5 was such a great upgrade then clearly it didn't convince the public as its sales (compared with previous s series models) seem disappointing