The fact is, Samsung never caught up with Apple in the smartphone race

“Apple has repeatedly proven that it can dominate the high-end of almost any market it enters. It did this with PCs (and still does), MP3 players, smartphones, and tablets,” Daniel Sparks reports for The Motley Fool. “But the fast-growing user base of Samsung’s flagship Galaxy smartphone line seemed to challenge the notion that this top spot could belong to the Cupertino-based tech giant for the long haul. Lately, however, Samsung is showing signs that it could slip from grace.”

“Notably — and contrary to some reports — Samsung hasn’t ever caught up with Apple in the smartphone battle,” Sparks reports. “This is clear by looking at the key metric every business is ultimately vying to boost: profits. Samsung’s mobile operating profits are weak in comparison to Apple.”

“In the fourth calendar quarter of 2013, the first full quarter of availability of the iPhone 5s, the iPhone accounted for an estimated 87% of global mobile operating profits according to Raymond James analyst Tavis McCourt,” Sparks reports. “Further, Morgan Stanley analyst Katy Huberty’s surprisingly accurate AlphaWise survey suggests that demand for the premium-priced Galaxy line of smartphones is actually slumping, with sales declining 1% in the second calendar quarter of 2014 from the year-ago quarter. The same survey projects Apple to report sales of 39 million iPhones, up 25% from the year-ago quarter… Meanwhile, analysts have big expectations for Apple’s iPhone 6 line, rumored to launch in two larger sizes later this fall.”

Read more in the full article here.

MacDailyNews Take: What do we predict for Samsung?

In the immortal words of James “Clubber” Lang: “Pain.

14 Comments

  1. I may be paraphrasing but I beleive Steve Jobs said ‘make great products that people want to use’. If you do this, the value of the product far exceeds the cost of the product. Getting this right means fewer discounts and BOGO sales directly resulting in increased profits. This isn’t rocket science but does require great focus, leadership and patience.

    1. Too right…but “…fewer discounts and BOGO(F) sales…”.
      Apple discounts…if you’re lucky 😀
      BOGOF sales…that’s for useless crap you never wanted in the first place so…never in a month of polkadot moons with Apple gear. And that translates into great sell on value.
      We Limeys prefer BOGO with an F…it emphasises the dodgy_worthless thingy and it’s also an expletive, which brings me round to my local phone shop. S5 BOGOF, years free insurance, no contract required for second phone and reduced data rates…
      It’s costing Sammy a fortune
      That’s one helluva train wreck…whoops.

  2. It is not just the lack of profit in their cell phones. I and many other like me who believe in right and wrong and thieves should not be rewarded have banned all products made by Samsung. I would have bought my new flat panel TVs from Samsung as I did 5 years ago but this time round – NO WAY – Vizio was good enough for me.

    If it has SameSung I just pass it by and I have shared my opinion to everyone I talk about. Do Not Reward Thieves.

    1. Exactly. Over the last 5-6 years I have chosen not to buy a Samsung product (yes I know they make chips in other brand products). This includes any form of electronic device, utility or appliance that is made by Samsung.

      If our so called “legal” system won’t do anything about it, as least I can do something.

    2. I don’t like them any more than you do, but even I have to admit that Samsung TVs are best in class, especially in the sub-$1k category. If you want to drop a lot of cash then other manufactures are as good or even better, but Sammy is hard to beat for the low end. Visio? Please.

      1. You both would be far better off with a Panasonic or Sony TV.

        Samsung is far from best if you have to use the qualifier “in class”, and Vizio is chinese junk.

    3. Bought a large Samsung years ago. Cheap under voltage caps caused a fail after a year.
      It took a class action suit to make them pay for repairs. 10 volt caps in a 16 volt circuit. Repairman did not need failure report, he already had the replacement parts.

      Cheap Samsung even then.

  3. samsung must being screwing up something with their user base…cause the S5 (on the outside), looks like they finally did something worthwhile of talking about…like the waterproofing, selective camera focus…

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.