“Samsung Electronics reported Thursday a bigger-than-expected decline in fourth quarter earnings as its mainstay smartphone and semiconductor businesses suffered from weakening global demand for consumer electronics,” Youkyung Lee reports for The Associated Press. “The South Korean company also warned a recovery in profit is unlikely during the first half of this year due to a tough business environment.”
“Samsung’s net profit for the October-December period plunged 40 percent from a year earlier to 3.2 trillion won ($2.7 billion),” Lee reports. “The result fell short of expectations, even after considering the negative impact from foreign currency exchange rates estimated at 400 billion won. A survey of analysts by financial data provider FactSet forecast net profit of 5.1 trillion won.”
“The latest results reflect additional challenges for Samsung as its semiconductor business, which helped offset declining earnings from smartphones since mid-2014, joined the mobile division in a profit slowdown,” Lee reports. “For the full year, it earned 19.1 trillion won ($15.8 billion), down 19 percent from the previous year and the lowest level in four years. It was the second year in a row with a decline in annual net income… The mobile phone business posted its second straight quarterly profit decline with 2.2 trillion won in operating income.”
It will mecome very evident very soon that Tim Cook’s evaluation of slow failing and weak world macroeconomics is real and that in that environment , Apple is still the world’s most profitable leading and innovative country – maybe the only one stiil leading in all profitability and fanfare.
Good luck with the FUD, both to wall st and the Donald.
It’s going to be interesting to see how each tech company deals with the current market conditions.
Apple has stated very clearly that business is unlikely to be as good as it has been recently, but will still be amazingly good. Other companies might be tempted to take a ‘steady as she goes’ approach and keep their fingers crossed.
I think that Apple’s approach gives me a lot more confidence in their ability to steer through rough waters, but all that Wall Street can see is that profits won’t be growing as much as they previously did. I’d be intrigued to hear which tech companies Wall Street believes will have better prospects amid the turbulent conditions that we are currently experiencing.
Samsung is suffering from sharply reduced smartphone sales ( not flat like Apple ) and lower profitability ( Apple’s margins increased ). Samsung can only keep component sales numbers high by selling for lower prices, while Apple’s iPhones are selling at a higher average selling price.
Ironically, it’s likely that part of Apple’s increased margins is due to Samsung having to sell components at cheaper prices.
Now, wouldn’t it be great if Samsung copied Apple one more time, tore apart its parasitic outlook on the world, including its crap management, and became a beneficial company to the world, like Apple? There’s a positive thought offered as Samsung sinks into its sulfurous schism of so screwed suffering. 😀
Derek, I agree with many of your comments. But I wholeheartedly disagree with this one. No, no, no, it would be much better if Samsung were to copy Compaq, Dell, or …even the bankrupt coal companies ! ha ha ha
Well, I figure I’ve been so mean, cruel, condescending, snarky and critical toward Samsung that it would balance the energies of the universe if I offered them one kind wish as their Titanic scheme of fraud, plagiarism and ripoff sank into the abyss of their own making.
So I believe Samsung could turn around their company into something positive? Clap if you believe in faeries.
Only after many or most other companies report abysmal profits will Apple’s results be seen in their proper perspective. In a tough business environment, Apple will stand out as a strong, well-run company. People should remember that Apple has had to work very hard in difficult business environments for most of its existence. It is in Apple’s DNA. And as TC said, Apple will invest through the tough times to take advantage of them. Not may companies are in a position to do that.
Separately, what many seem to have missed about Apple’s results is how well it performed when foreign exchange effects were accounted for. Without a 15% adverse FX effect on the 66% of Apple’s sales that are made “overseas”, Apple’s financial results would have been roughly 10% higher. Given the tough business environment that people are talking about, that is just amazing to me.
All of Apple is not compared against all of Samsung, just the Consumer Electronics division. The Macalope always reminds us that Samsung even has a weapons division…
The article says “Samsung Electronics” though. I realise they make tellys and fridges, but unless they break out their phone business I don’t see how else you can make a comparison.
I wish Samsung and Microsoft would partner in a future failed venture so I could read a headline that uses the word “beleaguered” to describe them both simultaneously.
Buy AAPL fast while it is still on sale – this really puts Q1 in a different perspective when we see that Apple absolutely SPANKED Samsung in profitable high-end flagship smartphone handset sales.
Just anecdotally, several late adopter friends and business associates just got the 6S Plus this year and my 6Plus is feeling long in the tooth – getting the 7 on day 1.
Stock going up I suppose.
It will mecome very evident very soon that Tim Cook’s evaluation of slow failing and weak world macroeconomics is real and that in that environment , Apple is still the world’s most profitable leading and innovative country – maybe the only one stiil leading in all profitability and fanfare.
Good luck with the FUD, both to wall st and the Donald.
It’s going to be interesting to see how each tech company deals with the current market conditions.
Apple has stated very clearly that business is unlikely to be as good as it has been recently, but will still be amazingly good. Other companies might be tempted to take a ‘steady as she goes’ approach and keep their fingers crossed.
I think that Apple’s approach gives me a lot more confidence in their ability to steer through rough waters, but all that Wall Street can see is that profits won’t be growing as much as they previously did. I’d be intrigued to hear which tech companies Wall Street believes will have better prospects amid the turbulent conditions that we are currently experiencing.
Samsung is suffering from sharply reduced smartphone sales ( not flat like Apple ) and lower profitability ( Apple’s margins increased ). Samsung can only keep component sales numbers high by selling for lower prices, while Apple’s iPhones are selling at a higher average selling price.
Ironically, it’s likely that part of Apple’s increased margins is due to Samsung having to sell components at cheaper prices.
At least we no longer have to hear all the idiots talk about how they “out innovate” Apple anymore.
Good.
Now, wouldn’t it be great if Samsung copied Apple one more time, tore apart its parasitic outlook on the world, including its crap management, and became a beneficial company to the world, like Apple? There’s a positive thought offered as Samsung sinks into its sulfurous schism of so screwed suffering. 😀
Derek, I agree with many of your comments. But I wholeheartedly disagree with this one. No, no, no, it would be much better if Samsung were to copy Compaq, Dell, or …even the bankrupt coal companies ! ha ha ha
Well, I figure I’ve been so mean, cruel, condescending, snarky and critical toward Samsung that it would balance the energies of the universe if I offered them one kind wish as their Titanic scheme of fraud, plagiarism and ripoff sank into the abyss of their own making.
So I believe Samsung could turn around their company into something positive? Clap if you believe in faeries.
I swear. I think the nuke pic is getting bigger and bigger every time I see it! Hurray!!!! lol
This is simply tragic, tragic news… /s
Only after many or most other companies report abysmal profits will Apple’s results be seen in their proper perspective. In a tough business environment, Apple will stand out as a strong, well-run company. People should remember that Apple has had to work very hard in difficult business environments for most of its existence. It is in Apple’s DNA. And as TC said, Apple will invest through the tough times to take advantage of them. Not may companies are in a position to do that.
Separately, what many seem to have missed about Apple’s results is how well it performed when foreign exchange effects were accounted for. Without a 15% adverse FX effect on the 66% of Apple’s sales that are made “overseas”, Apple’s financial results would have been roughly 10% higher. Given the tough business environment that people are talking about, that is just amazing to me.
All of Apple is not compared against all of Samsung, just the Consumer Electronics division. The Macalope always reminds us that Samsung even has a weapons division…
The article says “Samsung Electronics” though. I realise they make tellys and fridges, but unless they break out their phone business I don’t see how else you can make a comparison.
I wish Samsung and Microsoft would partner in a future failed venture so I could read a headline that uses the word “beleaguered” to describe them both simultaneously.
Buy AAPL fast while it is still on sale – this really puts Q1 in a different perspective when we see that Apple absolutely SPANKED Samsung in profitable high-end flagship smartphone handset sales.
Just anecdotally, several late adopter friends and business associates just got the 6S Plus this year and my 6Plus is feeling long in the tooth – getting the 7 on day 1.