“Sluggish sales of Samsung Electronics Co.’s Galaxy S6 smartphones helped trigger a share decline that wiped more than $10 billion from its market value in July — almost twice the capitalization of local rival LG Electronics Inc.,” Jungah Lee reports for Bloomberg. “The stock dropped 6.6 percent this month as the world’s biggest smartphone maker posted its fifth straight profit decline and said it would cut prices for its new high-end devices less than four months after their debut.”
“Samsung’s global smartphone market share fell more than 3 percentage points in the second quarter amid surging sales of Apple Inc.’s iPhones and tougher competition from Chinese vendors,” Lee reports. “‘I don’t see a clear answer for its smartphone business,’ said Marcello Ahn, a Seoul-based analyst at Quad Investment Management Co. ‘The vacuum of its business momentum will persist throughout this year and even into next year, giving investors less reason to snap up shares.'”
“Samsung will be ‘adjusting’ prices for the S6 and S6 Edge to maintain sales growth, the company said Thursday after reporting that net income, excluding minority interests, fell to 5.63 trillion won ($4.9 billion) in the three months ended June,” Lee reports. “That missed estimates and prompted the biggest decline in shares in four months.”
MacDailyNews Take: So, in order to keep the unit count up, move from from low margins to no margins or even to losing money on every sale? Genius business move, patent- and trade dress-infringing slavish copier! Genius!
“The 6.6 percent decline wiped out more from Samsung’s market value that the company has ever posted in quarterly operating profit,” Lee reports. “Samsung will add more middle- and low-end models, and cut spending in the phone division, it said.”
MacDailyNews Take: “Samsung will add more middle- and low-end models, and cut spending in the phone division.” Translation: Samsung can’t compete with Apple’s iPhone.
Looks like we now know where did Steve balmer go with his “genius” business decisions.
Samsung is moving exactly like Microsoft now, making decisions to try to compete with apple with out worrying about putting money in a war they can’t win and all that just for a $tupid business proud.
Claims that short supply of the Edge caused Samsung’s declining smartphone businesses pure SMOKE SCREEN.
I’ll bet everybody at Apple is laughing their asses off over that claim. Samsung, and the whole Android community for that matter, are well known for copying iPhone and introducing features nobody really wants.
Since MDN’s take on this is filled with such Apple “devotion”, if there were an equivalent Samsung “devotion” (thank goodness there isn’t) one could say that Samsung can afford to get out of the handset business altogether. Can Apple?
Since you ask, short answer is YES. Apple was big enough before the iphone, the iphone just came to make apple BIGGER no to save it.
Let me add that samsung can easily get out of the handset business because they almost have no handset business, that division was profitable (a little ) before with the features phones. But know that they have to spend a lot of money in a iphone replica and sell it for so little, they make so little profit out of it.
Apple can afford getting out of the handset market, can samsung afford losing apple as a customer? that would be a better question.
Once the WallNut Street manipulators have had their fun screwing the suckers, AAPL will bang right up to where it belongs. Been there, done that a dozen times or more.
I think Apple’s market cap loss is near $100 billion over the last few months. It’s outrageous this has occurred given the fact that Apple has significantly increased YoY earnings.
And Apple deops 60billion on outstanding profits. Makes sense to me
It doesn’t have to make sense. AAPL is not a safe place for your money. $100 soon.
ScamScum is ripe for a BOGO sale. 🖖😀⌚️
Looks like we now know where did Steve balmer go with his “genius” business decisions.
Samsung is moving exactly like Microsoft now, making decisions to try to compete with apple with out worrying about putting money in a war they can’t win and all that just for a $tupid business proud.
Claims that short supply of the Edge caused Samsung’s declining smartphone businesses pure SMOKE SCREEN.
I’ll bet everybody at Apple is laughing their asses off over that claim. Samsung, and the whole Android community for that matter, are well known for copying iPhone and introducing features nobody really wants.
Since MDN’s take on this is filled with such Apple “devotion”, if there were an equivalent Samsung “devotion” (thank goodness there isn’t) one could say that Samsung can afford to get out of the handset business altogether. Can Apple?
Stupid!
Truth hurts doesn’t it phony?
Listen up Hawkeyboy. Some advice for you.
When peeing outside….”Keep your back against the wind”.
When using a public restroom…”Don’t eat the big white mint!”
Since you ask, short answer is YES. Apple was big enough before the iphone, the iphone just came to make apple BIGGER no to save it.
Let me add that samsung can easily get out of the handset business because they almost have no handset business, that division was profitable (a little ) before with the features phones. But know that they have to spend a lot of money in a iphone replica and sell it for so little, they make so little profit out of it.
Apple can afford getting out of the handset market, can samsung afford losing apple as a customer? that would be a better question.
Keep going Sampossuckhead. Right down to the bowels of HELL you go. hehe
Meanwhile Apple drops $30 billion in market value on high demand for iPhone6 and iPhone6 Plus!
How ironic!!!!!
Once the WallNut Street manipulators have had their fun screwing the suckers, AAPL will bang right up to where it belongs. Been there, done that a dozen times or more.
AAPL for the long term. DUH!
I think Apple’s market cap loss is near $100 billion over the last few months. It’s outrageous this has occurred given the fact that Apple has significantly increased YoY earnings.
The ScamStung screwing goes on and on and on. Well deserved! Ding-down me all you like kiddies. This is highly satisfying!
📉📉📉🙀