“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. 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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