Beleaguered Samsung reports 30 percent decline in operating profit

“Samsung’s financial results continued to take a hit in the first quarter as the company battled tough competition in the smartphone market,” Shara Tibken reports for CNET. “Sales dropped 12 percent from the previous year while Samsung’s operating profit fell 30 percent. A 30 percent decline in operating profit isn’t minor, but it’s a smaller drop than what Samsung has posted in previous quarters — 36 percent in the fourth quarter and 60 percent in the third quarter. Samsung’s IT and mobile business recorded a 57 percent year-over-year drop in operating profits, compared with a 64 percent decline in the fourth quarter and a 74 percent tumble in the third.”

“Samsung has been struggling over the past couple years as consumers opt for devices from its rivals, such as Apple,” Tibken reports. “Samsung’s financial results, while improving, are worlds apart from rival Apple. The iPhone and iPad maker on Monday posted record revenue and iPhone and Mac sales for its fiscal second quarter. The company has been benefiting from soaring demand for its newest iPhones, particularly in emerging markets such as China, and it sold 61.2 million smartphones during the period that ended March 28. Overall, Apple’s profit jumped 33 percent to $13.6 billion, and its revenue climbed 27 percent to $58 billion.”

“Samsung, by comparison, has seen its sales wane, and the March period represented the sixth time in a row that the company’s quarterly operating profit has fallen from the previous year. Samsung has been struggling to compete against Apple in the high-end phone market and against newcomers such as Xiaomi at the low end,” Tibken reports. “Apple in particular has become a bigger threat with its larger-screen devices, the 4.7-inch iPhone 6 and the 5.5-inch iPhone 6 Plus. Simply wanting a bigger display is no longer a reason to buy Samsung’s devices, and its smartphones can’t reach the low prices of those from Chinese and Indian vendors.

“The iPhone 6’s popularity helped Apple pass Samsung to become the world’s biggest smartphone maker in the fourth quarter, according to tech research firm Gartner,” Tibken reports. “The firm believes Apple took home a 20.4 percent share of worldwide smartphone sales, up from 17.8 percent during the same quarter in 2013. Over the same period, Samsung’s share of the smartphone market, on sales of 73 million units, plummeted to 19.9 percent from 29.5 percent, Gartner said.”

Read more in the full article here.

MacDailyNews Take: Hello, Karma, so nice to see you again! Don’t hold back now, ya hear?!

It’s best not to mess with karma. – Steve Jobs

An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass.MacDailyNews Take, May 2, 2014

Apple grabbed 93% of the mobile industry’s profits in fourth quarter 2014.


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  1. Baloney. They probably have more losses than reported. By now they should be getting a hit from unsold phones that are stocked and not moving.

    They have no right downs? Impossible. Maybe they will quietly readjust these reports. Maybe when they have hit a bottom and comparisons will be zero.

  2. I thought this site was about Apple, not Apple’s competitors. Who cares about Samsung. I only care about Apple. Where would Apple’s iPhone be today if there were no Samsung components in them.

    1. Apple would be EXACTLY the same without Samsung but the chips inside the product would have a different manufacturers logo on them. Such is the problem with their business model. Beaten on the high margin side by innovation. Beaten on the low margin side by the forces of commoditization. To make matters worth they’ve lost all that time (and if history is any indication, their most creative personnel) in pursuit of a pretty predictable outcome. Samsung and Xiaomi. Thieves stealing from thieves.

    2. It is difficult to believe your petulant negativity is sincere. If it is, it is silly. It would be very difficult to discuss any appreciable amount of Apple information without reference to competitors.

      “The new iPhone’s screen specs are —-.” What does that mean? Why should I care? Compared to what?
      “Apple’s sales rose 5%.” So what? Did everybody else’s rise 20%? Or drop 50%?

      Context is critical.

  3. I just found this at Yahoo Finance: SEOUL, April 29 (Reuters) – Samsung Electronics Co Ltd overtook Apple Inc to recapture the title of world’s top smartphone maker by volume in the first quarter of 2015, research firm Strategy Analytics said on Wednesday.
    It said Samsung shipped 83.2 million smartphones worldwide and captured 24 percent market share in the quarter, down from 31 percent a year earlier but better than Apple’s 18 percent.

    “Samsung continued to face challenges in Asia and elsewhere, but its global performance has stabilised sufficiently well this quarter to overtake Apple and recapture first position as the world’s largest smartphone vendor by volume,” Strategy Analytics Executive Director Neil Mawston said in a statement.

    (Writing by Stephen Coates; Editing by Miral Fahmy)

      1. If we want to talk Android malware, it gets even *cough* better:

        Android apps still suffer game-over HTTPS defects 7 months later
        Apps with >350 million downloads fail to detect simple man-in-the-middle attack.

        More than seven months after being flagged as vulnerable, more than a dozen Android apps collectively downloaded at least 350 million times still contain fatal HTTPS flaws that cause them to leak passwords, phone numbers, and other highly sensitive user data, student researchers at City College of San Francisco found.

        The vulnerable apps include OKCupid Dating, Dish Anywhere, ASTRO File Manager with Cloud, CityShop – for Craigslist, and PicsArt Photo Studio, which collectively have commanded from 170 million to 670 million downloads, according to official Google Play figures. Most of the titles have been updated regularly, but they continue to contain a game-over vulnerability that fails to detect fraudulent transport layer security (TLS) certificates…

  4. so as markar12 calls them “ScamScum” has a big (39%) drop in profit and the stock is up. apple has a record 13 plus bill. profit and the stock is down. can someone school me on this please. now i know scamscum SHIP more phone (not sell) and they say ScamScum overtook Apple. but really. 13 bill profit to 39% drop.

    1. A double standard, Apple reports iPhones sold, the rest of the industry reports phones shipped. Reporters & analysts spin the figures to equate shipped with sold. Problem is shipped often does not equate with sold. Many shipped phones remain unsold and are written off. Phones are discounted or BOGOed to get rid of unsold inventory. What doesn’t get sold or BOGOed goes to landfill and is written off. Apple sells everything they ship at retail, or through carriers. Reporting shipped is just a way of spinning the truth to make it appear more successful than it really is. Shipped is meaningless without knowing how many were actually sold, and at what price or profit margin. Hope this helps. 🖖😀⌚️

  5. It is easy to forget that Samsung makes much more than phones. It may be facing heavy water, but that is surely not all. South Korea is facing much the same forces as Samsung, but it is easy to concentrate on the phones.

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