Apple’s thermonuclear assault on Samsung vaporizes Android’s remaining profit pillar

“After years of failing to do much more than embarrass Samsung Electronics in legal battles over patent infringement, Apple has rapidly obliterated Samsung’s mobile division profitability, rendering it as barrenly unprofitable as every other Android or Windows licensee with razor thin margins in the phone, PC and tablet market,” Daniel Eran Dilger writes for AppleInsider.

“While Apple’s critics might prefer to credit Xiaomi for Samsung’s decline, the South Korean giant’s plummeting profitability is not due to a major drop in its low priced, high volume phones and tablets but rather an implosion of Samsung’s profitable, high end Galaxy S and Note models that directly compete with iPhones,” Dilger writes. “As soon as Apple released its own large screen iPhone, the popularity of Samsung’s Note collapsed.

Thermonuclear
Thermonuclear.
Estimated phone shipments from Strategy Analytics suggest that Samsung’s total phone volumes in Q4 were only down 13 percent over the year-ago quarter, but the company’s reported profits from mobile plummeted by more than 64 percent.”

“Samsung is clearly facing a battle on both fronts. However, based on the numbers the company has reported, the catastrophic drop in profits Samsung suffered in the third quarter has come from a thermonuclear assault by Apple targeting its core revenue and profit generators: the high end phones that had been contributing most of the profits of the entire Samsung Electronics,” Dilger writes. “The damage Apple has caused Samsung will only get worse as the company’s low end is ravaged by other Android licensees.”

Read more in the full article here.

MacDailyNews Take: Something about large screen iPhones trumping traipses thru legal morasses when punishing slavish copiers.

Hey, Samsung: Eat shit.

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Apple, with high-end iPhones alone, poised to outsell Samsung’s total smartphone sales – January 26, 2015
Apple iPhone 6/Plus is killing it on Samsung’s home turf – January 23, 2015
Struggling Samsung returns focus to components as Apple iPhone eclipses Galaxy phone sales – January 8, 2015
Hit hard by Apple’s iPhone 6/Plus, Samsung expects first annual profit decline since 2011 – January 8, 2015
Apple’s iPhone 6/Plus take market share from Android – January 7, 2015
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Why Apple’s iPhone keeps raking in the majority of mobile phone profits – March 19, 2014
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12 Comments

    1. Profit pillar?
      PROFIT PILLAR??
      Did I just read MDN associating a profit pillar to Android???
      I hereby judge MDN as associate members of Comedy Central! 🙂

      1. Well, for Samsung’s mobile division, large-screen smartphones were the only source of profit, therefore, the profit pillar. With that pillar largely gone, Samsung is in the same place with all other Android peddlers — razor-thin margins and no distinction from the competition. In other words, if you’re an Android sufferer, why would you buy Samsung and not Meizu or Xiaomi?

        MDN may be right; the big ‘phablet’ of an iPhone 6+ did exactly what the legal system hasn’t (yet).

  1. We need to remember it has only started …. Not everyone has seen the new iPhone 6 and many are still in their contract from SamDunkie and other AndroidSluts …..

    Give us some better weather and the Apple Watch in April and watch Apple to continue to break year-over-year records handily ….

    Apple rocks!

  2. I’m willing to bet Wall Street will continue to sing the praises of Android for its major market share and they’re simply waiting for Apple to slip up somewhere. They’re anxiously waiting for the iPhone to turn into a commodity.

    I don’t know very much about what it takes to succeed in R&D results but with $178 billion to spend on it, you’d figure they’d have the ability up with some rather unusual products. There just doesn’t seem to be anything that Apple wouldn’t be able to achieve if all it took was money.

  3. So, MDN, you’re saying that Samsung should actually eat More Damn Dung from Samsung?

    It’s considered cannibalization for Apple to make iPads good enough to steal Mac purchases.

    So, Samsung eating shit is the same thing. 😛

    1. Voluntary cannibalization of your very OWN products is better business than someone else cannibalizing them over time.

      Microsoft has been so busy protecting Widows that it’s now irrelevant in both desktop and the mobile sector. That’s how cannibalization works. Apple Watch will one day canniblaize it’s bigger brother iPhone and we’ll all have a laugh at the copycat turds still trying to build a better iPhone. Steve Jobs was very well aware of this dilemma with the intro of the iPhone. The iPod had to be sacrificed in order for the iPhone to succeed.

      1. I know. I think some people missed My joke. I agree that self cannibalization for Apple is the best thing.

        And I was pointing out that Samsung eating shit Samsung’s version of self cannibalization.

        Ok. I’ll throw that joke out. LOL.

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