Samsung getting squeezed, losing both the high and low end

“Samsung’s spectacular run of profit growth may be coming to an end,” Daniel James writes for The Motley Fool. “The world’s largest maker of smartphones and televisions expects its second consecutive quarter of declining profit, sending some alarm bells ringing for analysts.”

“The company is suffering from increased competition from cheaper manufacturers, such as new entrant Lenovo on the one hand, and saturation in the higher end market on the other,” James writes. “As such, commentators believe the company will be forced to implement a number of cost-cutting initiatives, in addition to working on lower-cost smartphones.”

“Apple is facing many of the same problems as Samsung in its smartphone division. Samsung’s American competitor is now looking to challenge it in its home field, namely the 5-inch screen arena,” James writes. “The iPhone 6 is likely to have a considerably larger screen size than its predecessor, with Apple finally recognizing the popularity of larger screens and the low-priced Android phablets. Reports indicate that Apple will be releasing a 4.7-inch smartphone as well as a 5.5-inch phablet this year.”

Read more in the full article here.

29 Comments

  1. As may of is have said from the beginning, Apple was ceding a huge share of the market to Samsung on a silver platter. Just giving it to them. As with the iPad mini, it’s great that they recognize the problem and correct it. The iPhone 6 will be it’s biggest seller yet.

          1. what size are you talking about? 4″ or smaller? Nonsense.
            Phablets are considered larger than 5 inches, I think that’s where you are confused. Sure the above 5 inch phone is not as big a market, but MOST all Android phones are in FACT larger that 4inches look it up post a link and then talk.

        1. No, the report claimed one billion Android devices, not just phones. A check of a list of Android phones had 2/3rds (146) of the NAME BRAND listings had 4″ or smaller screens. A lot of those billion devices are non-phone, non-consumer devices as well.

    1. The question of how many larger sized iPhones would have been sold really can’t be answered by comparison. For example, I have wanted a larger display since the first iPhone and still do, but have never, yet, seriously considered a Samsung or Windows phone. Therefore, my purchase habits would yield a false positive preference for a smaller display. Perhaps, the only way we will know how well a larger iPhone might have sold is when they add one to the lineup and see how it does sell, side-by-side, against the smaller size iPhone. It will take this Apple to Apple comparison to figure this out. I think this is a tough one for the statisticians due to so many variables.

      1. Apple has never in its entire history EVER competed in the “cheap” market. You are absolutely correct. They don’t care, never have, and never will. They have ALWAYS said they will not make or sell junk. Ask Dell how trying to do that has worked out for them.

        1. While Apple does not care about the low end now and has not for most of its history, it is incorrect to say that it NEVER has cared about the low end. Specific versions of the Mac LC line and the Performa line were targeted at the low end. For the most part they failed to gain any traction and actually led in part to the dark days because Apple had to fire sale huge numbers of these systems (especially certain LC models) just to get them off the books. If memory serves me correctly they even sent some to landfills like they did with the Lisa/Mac XL.

          1. Thumbing through history: Oh yeah! It was specifically the Apple Performa Macs that killed off $1 Billion in 1996 and directly started off that particular era of ‘Apple’s Gonna Die’ in the press. The Performas rotted in warehouses, forcing Apple to write them off in 1998.

            So no, Apple is NOT going to return to playing in the cheap sectors. StaleShtup is welcome to it.

            StaleShtup <—New One! 😉

  2. They call this getting squeezed? Lmao. They ain’t seen nothing yet. After the double barrel big screen blast from Apple that’s coming soon, their high end market share will evaporate. Better get the coupons ready, Sammy. Get ready for some more BOGO deals. That’s all you’ll have left after the iPhone 6 and iPhone Plus reduce the Galaxy brand into ashes.

  3. Uh-oh. Looks like Samsung’s doing so poorly, their monthly check to the financial pundits must have bounced. All they need to do is dip into their corporate savings, and the stories about how Samsung is sure to crush Apple any day now will begin flowing again.

    ——RM

  4. why do people who comment here sound like they have known Apple just one week back? Android troll? Get the fuck out of Apple’s Beautiful Walled Garden! Run to your junk filled open street!

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