Samsung Electronics’ second quarter misses forecast as worries over its smartphone sales deepen

“Samsung Electronics Co Ltd missed already modest expectations for its quarterly earnings guidance on Friday, deepening worries that its smartphone business may have peaked, as growth in sales of its blockbuster Galaxy phones begins to wane and new rivals emerge to eat away at its market share,” Miyoung Kim reports for Reuters.

“The disappointing earnings estimate by Samsung, which has had a track record of beating even the most bullish forecasts, sent its shares down more than 3 percent on Friday,” Kim reports. “They have dropped 17 percent since early June, hit by a series of brokerage downgrades. The share price reflects concerns about Samsung’s handset margins, with its mobile business generating 70 percent of the tech giant’s total profit.”

Kim reports, “The fall in the share price equates to a drop in market value of 39 trillion won ($34.2 billion), or worth the combined market capitalisation of Sony Corp and LG Electronics Inc.”

Read more in the full article here.

MacDailyNews Take: Maybe the slavish copiers can make it up in volume?

[Thanks to MacDailyNews Reader “Double07” for the heads up.]

42 Comments

    1. Nah. I’m willing to bet that the masses have figured out via word-of-mouth just how bad ALL the android phones really are. Crappy ripoff OS. Malware exponentially flooding the Android market. Crap customer support. Blahblahblah. (o_0)

      Apple meanwhile:
      Watch the next iPhone pull another coup in the market. Obviously this quarter’s iPhone sales figures will be down in anticipation of the NEXT GREAT PHONE, something those losers-who-can’t-innovate will, as ever, envy and imitate.

      DARN Samsung!
      Sorry I mean SkimpScrap.
      You really ARE screwed.
      Told you so, didn’t I. 😆

      Next time Samsung, HTC, ad nauseam; Try actually COMPETING. Or is that beyond your capabilities, you lazy lousy flotsam foisters?

    1. You ain’t seen the real damage to Samesung yet. There are two important markets in mobile. Smart phones and tablets. The smart phone market is slowly creeping up on saturation. So that market will become much more dependent on repeat customers. Samesung will lose an unacceptable percentage of their customers on the 2nd or 3rd smartphone purchases, because of poor updates and service, cheesy quality, bad security and previously ignorant buyers who learned the hard way.
      And the tablet market is ready to grow exponentially. Apple dominates this market, and is positioned to ride this title wave all the way to the bank. Apple may need to divert some of its construction efforts to building more banks for their money! Ha Ha.

  1. Good Karma is something that can’t be copied. It has to be earned.looks like the bad Karma they earned is coming back to bite them in the ass.

  2. Frankly, I’ll be happy if Samsung loses its market-share to other Android operators particularly Sony and H.T.C. (they really make wonderful phones) It encourages a more balanced Android market which is what Google prefers.

            1. You’re either very naive or a paid Google shill. Eric Schmidt, the then CEO of Google, sat on the board of directors of Apple Corp. during the development of iOS, with its revolutionary touch screen technology, and the iPhone. Immediately after the release of the iPhone and iOS, Google announced that it had created Android, which mimicked iOS’ touch screen controls. The unique, buttonless operating controls in iOS, which were patented and not licensed in any way, would have meant that the iphone could not be duplicated by thieves like Samsung. Google, in effect, gave away Apple’s iPhone operating system to anyone who wanted it for free. This permitted companies like Samsung to copy the iPhone and steal sales from Apple. The public now assumes that the iPhone touch screen control system is a Standards Essential Patent, like most other shared technology. It is NOT! It is a private, legitimate patent that has been pirated. A jury has returned a $1B judgement against Samsung to that effect. Are we clear now?

            2. And BTW, Google’s motivation for stealing iOS was not selfless altruism. Google feared that if Apple grabbed the majority of the smartphone market it could freeze Google out of mobile search and advertising delivery, and prevent Google from stealing the personal information of Apple iPhone users, the sales of which are highly profitable to Google.

            3. Seriosly!?
              1. Apple did not invent the touchscreen or any touchscreen controls.
              2.The similarities btn. Android and IOS are just natural i.e opening apps & implementation of touch screen controls. Otherwise maneuvering the o.s is completely different btn. the 2.
              3.There is no proof that Eric Schmidt stole any ideas from ios to Android.
              4.It is understandable that Google would want to protect their interest in the mobile market.
              5.Iam not naive nor am I paid by Google I just love my Android experience and I just want to spread that love.

            4. @ Green

              the original Google Phone was a black berry clone with lots of BUTTONS. That was the phone shown to reporters at Mobile World congress etc.
              (you can check the photos on the web. )

              After Schmidt was privy to Apple’s plans Google did a rapid change over copying apple.
              According to Google engineers like Andrew Munn Android is more sluggish than iOS because (crudely speaking) the TOUCHSCREEN CONTROLS WAS WRITTEN OVER THE CODE FOR THE BLACK BERRY BUTTON CONTROLS.

              article:

              “According to Munn, the reason behind the design change is that the original Android prototype didn’t have a touchscreen, as it was meant to be a BlackBerry competitor. As such, Android’s architecture is meant to support a keyboard and trackball. Munn further claimed that after the original iPhone arrived in 2007, Google rushed to complete Android, but “it was too late to rewrite the UI framework.”

              He cited Windows Mobile 6.5, BlackBerry OS and Symbian as examples of other older operating systems that suffered similar problems with touch performance. Microsoft, RIM and Nokia have all abandoned those OSes in order to start from scratch. “Android is the only mobile OS left that existed pre-iPhone,” the report noted.”

              you can search Andrew Munn’s comments yourself.

            5. GO AWAY ASSHOLE!

              You very well know the facts if you are posting on this board, and no need for Zeke to have to explain them to you.

              Go jack off in your Mom’s basement while you wait for your check from Gaggle/Scamscum, instead of spewing your shit all over this site.
              Cheers!

        1. This is an apple fan site. Most people here view google as the one who stabbed apple in the back and stole iPhone tech, and they business strategy is to mine users data with little regard to privacy. They’re evil.

        2. Green says: “What do you have against Google anyway?

          Man, you really are ‘green’ around here.

          Google the spies who stole Apple innovations via Eric T. Mole when he was on the Apple board, applied them directly to Android and made it into a blatant CLONE of iOS? You know, THAT Google?

          As I often point out, Google’s idea of a GUI innovation is a WHITE background with animated STICK FIGURES. Google can’t even get the concept of ‘OPEN SOURCE’ right. Android is anything BUT ‘open’ in Google’s hands. Look up the new word ‘FRAGMANDROID’. Google are so inept and careless that Android is now THE malware magnet of computing. The growth of malware on Android is growing exponentially to the point where its growth numbers have eclipsed those of Windows. That’s DEADLY pathetic.

          THAT’S what we have against Google.

          Malware for iOS?
          Zero.
          None.
          Not-A-One.
          (Unless you hack your iOS device, then you’re on your own).

          1. It’s very difficult to get infected with Android malware, infact I have never seen an infected Android device. If you stick to Google play store and download apps with good reviews and trusted permissions you will never get any malware also Google does an okay job in policing the store.
            The fragmentation issue is also being adressed, the jellybean adoption rate has been much faster than that of ICS. Google has also slowed down update releases. Now that companies are starting to offer vanilla(unskinned android) options for their flagship devices, the situation can only get better.
            All of IOS users are so defensive against Android as though it is an enemy, It is not. Your IOS experience has been enriched by the existence of Android. Apple has borrowed alot from Android and competition from Android has pushed Apple to innovate more. I appreciate the existence of Ios because it just makes my Android better. If there will be a timbette that I feel that IOS is better than Android I will just jump ship, simple as that.

            1. Green, I fully believe it is hard for YOU to get infected with Android malware. However, the data doesn’t lie. It point out the for A LOT of Android users it is dirt easy to get infected. That is why so many Android devices are infected and why the stake in the Android market has exploded among the malware rats. It is THE OS to infect at the moment. It used to be Windows.

              Certainly the security holes in software in general hasn’t fallen off. I’ve lectured about why. The foundational problem is crap default memory management in our current, primitive, programming languages. (YES! I dare call them primitive!) But damnable Google decided to NOT be progressive and instead didn’t give a rat’s about the innate insecurity in Android and its app sales system and, IMHO as a security analyst and commentator, irresponsibly foisted this primitive (there’s that word again!) operating system and sales system on the public with NO regard for the results. Google STILL don’t care. Google’s response to what amounts to a catastrophic malware problem has been a MEAGRE after-the-fact clean up job. Oops! Way too late. NEVER acceptable.

              As for the FRAGMANDROID problem, NOTHING has been done to address it. Google are perpetuating yet another offshoot of Android in their next round of their own devices. THAT version of Android will NOT be accessible to any other hardware manufacturer. That’s DELIBERATE fragmentation of Android. So much for the Google ‘open source’ LIE.

              Slowing down update releases? That’s beneficial in what way? So the laggard companies can catch up?

              Defining ‘all the iOS users’ as defensive of Android is silly. If you don’t want to notice my stake in progressing the sorry state of software security in general, that’s a problem. That’s YOUR problem, not mine.

              Apple HAS ‘borrowed’ aspects of Windows AND Android. It’s another form of silliness to hide from that fact. But what I’m seeing among certain trollish Android uses is taking this fact and turning it against Apple as if:

              1) That’s always acceptable, therefore layoff all prosecution of plagiarism. <-Ridiculous and deadly to the creative process.

              2) Apple didn't rips off everything. <-Ridiculous and again deadly to the creative process. Every company in the computer gadget market owes an ENORMOUS debt of gratitude to Apple, among many companies, for being PIONEERS in the field, from the start and right up to today. Anyone not recognizing the REAL inventors and innovators are either lying or are intensely ignorant of technology.

              I think that's enough lecturing from me for the day. Just note that I never write this stuff for my benefit. I write it for other people's benefit. I insist upon benefiting other people with my work, which I usually provide for free. I'm sure some troll will find a way to consider that bad. But they can bite me. 😀

            2. @Derek

              It’s great that you are producing logical arguments. I apologize for generalizing IOS users since I myself have been using the iPad until recently when I decided to fully immerse myself into the Android world with a nexus 7.

              MALWARE is real and no platform( even IOS ) is immune to it. IOS has done a remarkable job in keeping malware away from the app-store but downloading of pirated apps and jailbreaking leaves you open to malware. Android on the otherhand has had poor managementof the play store in the beginning. You are wrong in assuming that Google have done little to address this problem, Android 4.2 has a ‘verify apps security feature’ and the playstore has tighter restrictions.

              It is fact the the amount of malware in Android is increasing, what is not a fact is that the amount of Android users exposed to malware has also increased. You will read all kinds of tech-stories about how terrible Android malware is but the reality is that your average Android
              user who never enables app installation
              from Unknown sources is incredibly
              unlikely to encounter any problems. If
              you stick to Google Play Store and you
              only install apps and games that have
              high download figures and lots of
              reviews then you are at virtually no risk
              of running into malware. Android malware has been exaggerated to ridiculous levels by
              security app developers and then being
              picked up by rival platform fans and
              even execs as a stick to beat Android
              with. These security app developers have a vested interest in selling AV apps in the play store.

              OPEN SOURCE is Android’s game and however you try to bash it, it gives Android the edge in innovation. Granted, it brngs about FRAGMENTATION but Google is making major strides in that area. It not true that Google withholds a version of its Android O.S. Android gives manufucters the same Android versions and they skin them to differentiate btn different other manufucturers. Fragmentation is an unfortunate consequence of this.

              There is a reason why IOS is currently borrowing Android ideas and not the other way around. Android is developing faster than IOS and this is mainly attributed to Android being open-source because innovation comes from both Google and the Android community.

              I’ll finish by saying that using ANDROID or IOS will ultimately come down to choice if you have all facts about the 2 O.S on the table.

            3. Kewl conversation.

              But I will point out that there is no exaggeration in the exponentially increasing amount of malware for android. Also, this time over 99% of all new malware is specifically for Android. That makes new Windows malware insignificant. As a writer about computer security I have to point out that the malware writers go for the ready meat.

              Apple’s OSes never had the FUD predicted ‘flood’ of malware specifically because the OSes are extremely difficult to PWN. I’ve heard crap alternative excuses out the ears. but that’s the case. And no, there is nothing perfect about Apple software. QuickTime is the worst of it for security flaws.

              I also have to point out what is unpopularity called the LUSER Effect. I know you personally are terrifically conscious of exactly how to stay safe. However, that behavior is exceptional. I know this about myself as well, which is why I consistently make myself write about the grannies in the world (my mother!) who have not-a-clue about how to keep their computer gear safe and secure but can learn. And there are even worse users for whom there is no hope. (My father! – Thank you to my grandfather for my tech skills).

              It’s super fun to counter-FUD the trolls, turn them on their heads and shake out their talking out sheet of lies. But we both know that currently Android is a ‘good enough’ OS that has some major problems, like the malware and the fragmentation whereby most users cannot upgrade to the latest version. I previously pointed out that Google has enabled that problem even further by stating they are coming out with their OWN version of Android that will NOT be ‘open source’.

              Android will continue. It will improve. It will work. But I’m see no reason to stop pointing out the malware and fragmentation. The plagiarism and counter plagiarism will sort itself out.

            4. The thing is malware writers are having a difficult time in getting their handiwork to the average Android user because Android is based on Linux. These writers are forced to use corrupted applications to get to the user. If an Android user never un-ticks the unknown sources option in the settings then the only avenue for malware is the play store. If a modicum of control and vigilance is exercised in the store then your device will remain unaffected. It’s really really easy to avoid malware. If you need a free state of mind then downloading a free AV app like Avast( which incidentally comes with nifty anti-theft capabilities ) will provide you with just that. Most of the time deleting the offending app will restore the malware-free state.

              So even if the types of Android malware reaches a million so long as it doesn’t get to the user they remain a minimal threat. Proper reports show that by the end of 2013 Less than 2% of Android users will be infected with malware if current trends are to be maintained.

              As for fragmentation, currently jellybean is the most used version, so at-least Google is doing something right. OEMs have realized that for them to be competitive they have to support the upgrading of their devices. For some of the devices stuck all the way down in gingerbread, upgrading is just not possible with the available hardware. Google has taken a positive step in addressing this situation, theyare working on Linux kernel 3.8 which will help with low resource phones. The tide against fragmentation is slowly but surely turning.

              As for iOS I strongly feel that their restrictions are holding them back. They could possibly embrace the jailbreaking society, harvest their ideas and incorporate them in their O.S otherwise they will fall behind and they may never catch up.

  3. While I am happy to see Samsung suffer a bit of misfortune, please keep in mind that the market forces that are adversely impacting that company can affect Apple, as well.

    Wall Street looks for growth, earnings growth in particular. Earnings are reflected in key measures of stock performance such as the P/E and PEG. Anything that might impact future (projected) earnings is given a lot of weight – reductions in gross margins, reductions in unit sales, market entry of expansion by competitors, currency fluctuations, etc. I believe the biggest factor that is currently weighing down AAPL is the fear of the unknown with respect to the “next big thing.” Since the untimely demise of SJ, Apple has released excellent, but mostly evolutionary products. People are looking for the next revolutionary product to emerge and show that Apple still has the “right stuff.” Unfortunately, design and development genius does not reveal itself on a strict schedule. We have weathered lmuch longer droughts in the past (the 1990s, for example). Do you remember how long it took to develop a worthy successor to the classic Mac OS and the additional years that were required to get to an operational version (10.2). The iPod evolution was fairly slow, too. We have to be patient and not allow ourselves to be fazed by all of the meaningless second-guessing of Apple that is the rage right now. We know Apple far better than most of them know Apple. As avid Mac and iOS users, we understand the heart of Apple and the soul of Apple, not just the financial bits and bytes and the prognostications of uninspired financial analysts.

    1. I believe the biggest factor that is currently weighing down AAPL is the fear of the unknown…

      This is called FUD, aka Fear, Uncertainty and Doubt. It is a propaganda tool used to manipulate sheeple into the shearing pen where they get fleeced of their cash.

      I call this ‘The Age of Marketing’. Any time you see FUD applied to manipulating people, you know some ‘Marketing Moron’, someone verging on the psychopathic, is out to screw someone else. This behavior most certainly is the ‘Spirit of the Age’ within the current Wall Street culture.

      IOW: In the current age, always watch your back or someone will steal the shirt off it. Professional capitalism is out of fashion. 👿

  4. When I bought my Android phone, I didn’t choose Samsung. Instead I chose Sony Xperia Z and happy with it. Really happy I didn’t buy Samsung phone 🙂

    1. Paul: It’s still Android. And it’s still a malware rat’s nest.

      But if Sony can make a go of it via actual innovation, versus gross imitation of Apple, more power to them! Apple always requires REAL competition.

  5. I PREDICT!

    There will be a second wave after the one that flattens all the crappy Android phone makers. That will be yet another RISING TIDE of Apple. Keep an eye on AAPL and ENJOY! 😀

    Oh and all you Apple Bear Bullshitters? It hit the fan, in YOUR direction. Good luck getting the stains out. 😛

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