“Samsung Electronics Co. is considering a major leadership shake-up, according to people familiar with the matter, part of an attempt to revive its fortunes after a difficult year that has hurt its profitability, market share and stock price,” Jonathan Cheng and Sam Schechner report for The Wall Street Journal.
“The internal restructuring, the details of which could still change amid an ongoing annual review, would be a sign of Samsung’s attempts to find its footing after a brutal year in which third-quarter profit fell 60% amid market-share declines in smartphones around the world,” Cheng and Schechner report. “The mobile division, under co-chief executive and mobile head J.K. Shin, didn’t seriously question bullish projections for orders of its flagship smartphone, the Galaxy S5, which went on sale globally in April, according to a person familiar with the matter.”
“Samsung produced about 20% more devices than it did of the Galaxy S5’s predecessor, basing the numbers on a survey of its carrier partners around the world, who were asked to predict demand but who weren’t on the hook for any unsold devices, according to the person. That led to merchandise piling up in warehouses, forcing Samsung to increase marketing expenditures to unload the devices,” Cheng and Schechner report. “In all, Samsung sold about 40% fewer Galaxy S5 smartphones than expected.”
Read more in the full article here.
MacDailyNews Take: Aww, that’s too bad. 🙂
An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass. – MacDailyNews, May 2, 2014
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
Can you imagine the outcry from the tech “press” if Apple sold even 5% fewer gadgets than estimated? When Apple exceeds its guidance, the company is still often punished in the press and the markets. Samsung is selling FORTY percent fewer Galaxy S5 units than expected and I bet you’ll barely hear it mentioned. I guess the press has moved on to a “Xiaomi is going to eat Apple’s lunch” theme…
Boycott Samsung for Life!
The story above is wrong. Samsung SHIPPED 40% fewer Galaxy S5 phones than expected. They likely have at least 10% stuck in the channel and another 10% in their warehouse.
And those are shipped units.
Also, this is why the stories by the WS shysters about Samsung winning apple’s business. Baloney of course. Expect abysmal numbers for this current quarter. Expect more Samsung winning apple business. All baloney of course.
Craig’s List is an option!
Craigslist was broken, at least on Sunday. Maybe from all the Samsung phones being posted for sale. 😛
So 40% fewer than anticipated translates to 85% of last years numbers or sales are down by 15%.
They got screwed by the phone companies, big time.
Certainly someone doesn’t get to keep their job.
In other news: thefts of SameShame’s larger phones are up since Apple introduced the iPhone 6+. Thieves are mistaking the larger ShameScam phones for iPhone 6+s. That’ll teach them! 🙂
An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass.
Can’t we do both?
No need. Tim Cook pulled the reins on Jobs’ legal thermonuclear war a couple of years ago, finishing up existing cases and not really pursuing new claims. Instead, Cook has focused Apple on jumping so far ahead with hardware innovations coupled with tightly integrated software features that no company which doesn’t produce the entire process can hope to keep up.
This is Cook’s thermonuclear war: Cook is moving Apple at warp speed, while all the Android makers are still flying 747s. In 5 years, we’ll have to categorize Apple devices as something above smartphones, because nothing else will be able to survive an iPhone’s shadow.
Massive success is the sweetest revenge.
Reorg? You mean like at Blackberry
The screwing of ShamScam continues. And it shall be good.
“As it was inevitably written, so it shall be done.”
Ahhh, I REALLY enjoy articles like this one! 🙂
ShameSung screwed themselves more than anyone did to them. Apple simply out-innovated everyone else on the planet with designs and features that cannot be easily copied. ShameSung simply can’t keep up with the copying and simply produced the Galaxy2 with cosmetic changes and upgraded hardware with no new functions year after year and consumers are wise to buy from the cheaper makers of Android phones.
ShameSung has already squeezed the last profit out of the Galaxy line but management was optimistic of increased sales which is simply a case of fooling themselves but everyone else. It remains to be seen what a management shakeup will do – maybe new directions in copying from their low cost rivals? Launch xiao mi lookalikes?
But Samsung are not going down like RMS Titanic (Microsoft), a slow foundering. Samsung were torpedoed right in the lunch bucket by Apple.
Well, it is the Christmas holiday season Samsung. Perhaps you can take the excess Galaxy S5 phones to the Island of Misfit Toys?!
There is landfill in New Mexico where they just unburied a bunch of Atari “ET” games. So they have this huge hole just perfect for all the unsold scamscum devices.
Bury them for 30 to 40 years and maybe they’ll be worth something.
Uuuuuuummmmmmmm………..probably not……..
Where is the funny “I am an Apple iOS device and I an NOT an Apple device” TV and Internet adds!
Oh the fun!:
• 64 bit vs 32 bit
• Virus malware free vs infestations
• Apple eco system vs open (very open … Think hospital gown here.)
• Metal vs plastic
• etc.
Come on Apple PR and Advertising department (IF THERE IS AN ADVERTISING DEPARTMENT). If you can’t “Think Different” any more, at least do what worked before!
Totally not necessary… Apple sells every iPhone they can make, usually demand outstripping supply… If you can barely meet demand, why advertise?
Folks, hang on to your older iPhones. Blackberry is already offering $600 if you part with your iPhone for their new phone. I’m sure Samsung will soon be doing the same thing. Who knows? You might eventually get to auction your old iPhone to the highest bidder among Blackberry, Samsung, HTC, Windows etc!
A 60% drop in profits in the 3rd qtr!!!!! Ah, sweet justice. That news alone will escalate AAPL. .
That’s why (AFAIK) Apple’s carrier-contracts basically say:
“You buy X amount of phones at price Y, consumable over Z years”.
Apple only produces what it has already sold (plus maybe a bit of a delta for wiggling room)!
Obviously, somebody at Samsung screwed up big time over this.
Unbelievable.
Well, on 2nd though, not so unbelievable after all….