Samsung posts biggest drop in earnings since 2009 on weak Galaxy phone sales

“Samsung Electronics Co. posted its biggest drop in quarterly profit since at least 2009 as the world’s largest smartphone maker loses ground to Apple Inc. and Chinese competitors,” Jungah Lee reports for Bloomberg News.

“Operating profit fell 60 percent to 4.1 trillion won ($3.8 billion) in the three months ended September from a year earlier, the Suwon, South Korea-based company said in a regulatory filing today,” Lee reports. “Declining share of shipments in China and India plus lower demand for Samsung’s high-end products are eroding profit from the units supplying displays and processor chips.”

“Sales were about 47 trillion won in the quarter, the company said today. That compares with the 50.3 trillion-won average of 40 estimates,” Lee reports. “While total smartphone shipments rose in the quarter, the mobile unit’s profit margin shrank on higher marketing spending and lower average selling prices for devices, Samsung said in an e-mailed statement.”

MacDailyNews Take: Yes, that Mikey Dell make-it-up-on-volume is a great strategy, huh?

“Third-quarter operating profit at the mobile unit, the company’s biggest business, was probably 2.5 trillion won on sales of 26 trillion won, according to the median estimates of five analysts surveyed by Bloomberg News. The unit’s profit fell from a record 6.7 trillion won a year earlier,” Lee reports. “Samsung probably shipped 12 million units of its marquee S5 smartphones in the third quarter… according to I’M Investment & Securities Co.”

MacDailyNews Note: Apple sold 12 million iPhone 6/Plus units in its first four days. YKBAID.

Read more in the full article here.

MacDailyNews Take: Burn, baby, burn! To the ground.

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

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    1. Prediction; Samsung should be announcing a “save face” exit out of the high-end line of phones by the end of 2014 to now concentrate of making what they are good at; the low end line. Galaxy line of phones will be discontinued by the end of 2014.

    2. Oh Hannah…

      Did you really have to set this new avatar ? Now I will spend even more time scanning through comments here.

      Hats should become mandatory attire, that is clear now. At all times.

      1. Currant:1.
        a small seedless raisin, produced chiefly in California and in the Levant, and used in cookery and confectionery.

        Samsung sells currants?
        Apple doesn’t, so why should we care?

  1. The dominant genes in Samsung DNA are responsible for the character traits of thievery, lying, and unmitigated posturing. Eventually these traits will destroy Samsung. Look at what is happening to Microsoft. Microsoft also has a monopolist bully gene.

    1. Except not mine. And hopefully no one’s here. Keep the pressure on: boycott the scumbags. Show them how we feel about cheats, thieves, phonies, and low-lifes.

  2. I predicted that Samsung had peaked. I had also predicted that iOS will be over 50% in the US. Some analysts think it will happen this quarter.
    Two tipping points.

  3. Well, I saw this coming years ago and I find it amazing that the SameDung management thought they could continue their little lucky winning streak indefinitely. What an epic collective brain fart they had.

    I can even envision SameDung having to exit the devices business several years down the road because they’ll get engulfed by the tsunami of cheaper Fragmendroid crap from the army of Chinese brands. And they *will* get out of it when they realize it’s a money-losing proposition.

    Next quarter (and beyond) will be even worse – much worse – with the iPhone 6/Plus having been out and Apple slowly catching up with demand. It’ll be a bloodbath – a crushing rout – and they’ll be helpless to do nothing but watch it all crumble in front of their eyes.

    And then there’ll be Google (mainly that repulsive dickhead named Schmidt) observing all this and saying, “This didn’t exactly work out as we planned, did it?” Can someone ask that asshole what he thinks of how things are going with SameDung?

    And I laugh at the all the idiots who said, “This iOS-Andorid war will end up just like the Mac-Windows war.” Haha. No, history doesn’t always repeat itself. History is shaped by those who understand it and learned from their mistakes and adapt to what’s going on now and the future.

    As for SameDung, go back to what you know how to do best – make displays, chips, and other components. That’s your DNA. That’s why Apple, your biggest customer that you so wickedly stabbed in the back, still buys stuff from you. Stick to what you know how to do instead of ripping off other people’s work. Maybe then people will start calling you “Samsung” again.

      1. Thanks, ban6dit. I check on this site daily. It’s the only Apple-related site I visit on a regular basis. Things are much more concise here and I get a quick overview of things. I only post if I feel I have something to add to the discussions.

        Obviously, I often have things to say about SameDung because I’m of Korean descent (lived the first 11 of my 16 years there) and I visit Korea often. That’s why this company tends to bother me a lot – because I care about Korea and I find their actions and ways of doing business deplorable and embarrassing.

        I was actually impressed and proud of how they evolved and progressed to become the largest supplier of displays, semiconductors, and TV’s and pretty much vanquished the Japanese electronics giants. But the way they went about with the smartphone business was nasty. Disgust and embarrassment are the two words that came to mind observing the way they do business – both here and there.

        1. Yea I have noticed your detailed comments on Samsung related articles. Your comments are interesting and show knowledge that I think most don’t have. So I think you add good insight into discussions about Samsung.

          I lived in Korea from May 2009 until February of this year (not military) and have grown to know a lot about Korea and Samsung. It was/is easy to see how Samsung controls the government and how it runs its business.

          Im sure you and I could have some interesting conversations about various subjects. ^^

    1. Agree. The Mac / Windows outcome was because SJ left and Apple Computer stopped innovating.

      I’m hoping that SJ did instill the ability to innovate and create as part of the new Apple Inc.

      I like what I’m seeing so far.

    2. They knew all right which is why they paid a fortune in marketing, especially to try to devalue Apple, paid every Tom Dick and 朴 to flood social media with FUD, launched every flavour of phone on almost a monthly basis to try to hit a sweet spot and keep the hype of the new ticking along and decline profit for an attempt to flood the market and buy share. They knew they had only a few years to achieve this and despite Apple allowing them a head start in many ways over size in particular they still failed. Now its a matter of how long and how much they can hold on to. Notice now their advertising is all around b list celebs and telling us how they are the most popular phones (you probably don’t get that in the States because of the numbers). Having failed to succeed they are now trying to convince us they have. Desperation has sunk in, you can smell the fear.

    3. Koreans are wonderful people! I admire their way of life in small doses but in large doses the way they deal with adversity.

      Samsung does not represent Korea,
      Samsung is the antithesis of Koreans.

      When it comes to smart phone technology, Samsung is google’s whore.
      That is how anybody who respects originality in technology advancement should view Samsung.

  4. Samsung’s MOA is to jump on new technology, copy as much as it can and sell whilst it can until the have to settle lawsuits or the consumer moves on.

    In this case Samsung got hit by competition sucking the low end market and Apple pushing from the top end. Plus Apple also hit them with loss in component sales.

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