Apple takes a bite from Samsung; there could be worse to come

“Samsung Electronics has gone from smartphone model to basket case,” Aaron Back reports for The Wall Street Journal‎. “There could be worse to come.”

“Samsung said Tuesday its third-quarter operating profit likely fell 58% to 62% from a year earlier, which was even worse than already low analyst expectations. It was the fourth quarter in a row of declining operating profit,” Back reports. “A detailed breakdown won’t be available until Samsung releases full results, but the problem is clearly in the mobile division.”

“Samsung’s smartphone business is facing intense competitive pressure at the low-end from Chinese handset makers, and at the high-end from the iPhone,” Back reports. ” With the iPhone 6, Apple essentially wiped out Samsung’s distinguishing feature: a big screen size. And with the jumbo iPhone 6 Plus, Apple has now entered into the ‘phablet’ segment that Samsung pioneered.”

Thermonuclear
Thermonuclear.
Back reports, “The third quarter included just 12 days of iPhone 6 sales. Expect the impact on Samsung in the fourth quarter to be much bigger.”

Read more in the full article here.

MacDailyNews Take: Karma sure is one beautiful bitch!

May Samsung’s pain be multiplied by infinity.

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31 Comments

    1. Bill,
      it’s strange that you mentioned about Samsung and the insides of the iPhone.
      When I worked for a large school system on the east coast, I had to chuckle heads that insisted that because Samsung made the displays for the iPhone at that time that the iPhone was really a clone and copy of the Samsung phones available at the time.
      Nothing would convince them otherwise.

      1. They could see the screens, sort of like a tiny TV. Like TV, or cell phones or just about everything else, they had no clue what goes on inside the box. It might as well be magic and they might as well be muggles. A billion transistors here, a billions transistors there. Pretty soon you’re talking real technology.

  1. With Apple taking the bite on the high road and the other Asians nipping off the low road, Samsung needs to decide if it can compete in “cellphones.”

    Pure guess says they should be a supplier only, but swallowing that would likely be regarded as a defeat to their management, so they will struggle along for more years trying to nick away in both high end and low end phones.

    1. Samsung could have had a sweet business as a key supplier to Apple. But they got greedy. I doubt — and certainly hope — that Apple throws them nothing but a few crumbs …just enough to keep Apple’s _other_ supplies on their competitive toes.

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