Lower than expected Galaxy S6 sales fail to drag struggling Samsung back into profitability

“It looks like the Galaxy S6 and Galaxy S6 Edge hasn’t been enough to drag Samsung back into profitability,” Adrian Kingsley-Hughes reports for ZDNet.

“According to a report by BusinessKorea, industry sources are predicting that operating profits will come in lower than expected for the second quarter of 2015,” Kingsley-Hughes reports. “Analysts had initially predicted that the Galaxy S6 would pull Samsung back into profitability.

Kingsley-Hughes reports, “However, the latest forecasts suggest that Samsung’s profits could fall 24 percent year-over-year compared to Q2 2014.”

Read more in the full article here.

MacDailyNews Take: Karmic.

Thermonuclear
Thermonuclear.

 

SEE ALSO:

Apple’s indomitable iPhone 6/Plus sales unfazed by Samsung’s anemic Galaxy S6/Edge – June 2, 2015
iPhone 6, killer: Beleaguered Samsung’s Galaxy S6 sales are a total disaster – May 22, 2015
Beleaguered Samsung reports 30 percent decline in operating profit – April 28, 2015
Samsung Galaxy S6 phones suffer weaker than expected sales in South Korea homeland – April 22, 2015
15 percent of Samsung Electronics execs quit amid profit slump – April 2, 2015
Significant Android to iPhone switching weakens market for Samsung Galaxy S6 – March 24, 2015
Apple iPhone takes smartphone market share from Android around the world – March 4, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015

25 Comments

  1. Apple’s marketing approach – Make ads that show what Apple’s products can do, in the hands of Apple’s customers.

    “Here’s what you CAN do with Apple!”

    Samsung’s marketing approach – Makes ads that show gimmicky features that Apple’s products do NOT have.

    “Here’s something you canNOT do with Apple!”
    Past example – Touching phones to transfer data.
    Current example – Curved edge on screen.

    Samsung should stop endlessly comparing its products to Apple’s products. Samsung is just setting up Apple as the “gold standard.” Customers will then compare for themselves, and pick Apple.

  2. In the high end smart phone market, Apple has established the standard in usability and style. If you’re a company that is foolish enough to compete in that market, what can you do to gain some decent market share? Copy, shamelessly? That hasn’t worked so far. Come up with something truly innovative in terms of usability or style? That hasn’t worked so far. Maybe the best thing to do is abandon that market and go for the low end.

    1. I refuse to believe that Apple has a 100% complete monopoly on innovation in the high end mobile space. Others have come up with some interesting ideas — some of which have been adopted by Apple. This will likely continue to happen.

      I hope others can step up and push the implementations forward. This will spur Apple to go even further. Competition — real competition based on real, independent innovations — is necessary to keep the field moving forward at a rapid pace.

      1. It’s a widely held assumption that Apple needs effective competition in order to innovate. The reality is quite different because for the most part, the competition is trying to match Apple rather than leap-frogging Apple.

        Some of the ways that Samsung tries to leap frog Apple are delusional, such as octo cores, which sounds much more powerful, but fail to deliver more speed in the real world – unless you carefully cherry pick specific test results.

        Apple’s design culture is obsessed with making the best products that they possibly can and not releasing anything until they feel it’s as perfect as they can make it. You don’t need to rely on competition from elsewhere if perfection is your standard. The alternatives to Apple’s products are mostly developed on a faster schedule and have to be made cheaper because there is no guarantee that the sales will be anything like so high, therefore economies of scale work against those companies, while working very much in Apple’s favour. That’s all the more true as Apple only releases a very limited range of models and can be pretty certain to sell each of those models in immense numbers.

    2. Before I retired I worked in the telecom CPE (customer provided equipment) market. Providers quickly settled into 3 categories: large (more than 15 technicians), medium (6 to 14 technicians) and small (less than 6 technicians). The firm’s that struggled the most were in the middle. They didn’t have the resources to garner confidence of large system buyers, and their fixed cost overhead prevented them from being competitive against small firms specializing in small system sales. Essentially they were squeezed between the top and bottom.

      This is where Samsung finds itself. It’s impossible to differentiate high end from low end products when they carry the same nameplate.

      Apple has been very smart to ignore the lower priced market segment, instead charging a premium for products that are clearly better in design, form, fit, finish and use ability. There exists a class of consumer that appreciates such quality, and is ready, willing and able to pay for it. Of course there is also a segment of the market satisfied by “good enough”.

      Look at how much of the industry’s profit Apple controls and you’ll see exactly where Apple is positioning ALL of its products/Brand.

      Samsung is not positioned to compete on this level and is therefore being squeezed between the high end (Apple) and the low end (Xiaomi, Huawei, etc).

  3. Samsung’s profit declines over the past year or so have already inflicted more pain than the courts have or ever will. And some of that pain trickles right down to Google/Android.

    Apple win-win.

      1. I have PopChar, which makes it dirt easy to fly through the Emoji graphics font and pick out what you’d like to use. There is a full alphabet inside boxes like this. There are a few further letters in red, blue or purple boxes for odds and ends purposes.

        I don’t know how to access these boxed letters using Emoji in Apple’s Character Viewer, at least on OS X 10.9.5, which is what I usually use. They simply aren’t there.

        Note that WordPress uses its own rendition of the Emoji font, which means its not exactly WYSIWYG from Apple’s Emoji to WordPress’ Emoji.

  4. shamesung pushed the limits of people stupidity and they broke that limit. those people no longer believe that just because they look alike or their naming number are the same the device must be the same or almost the same.
    I’m glad that people are waking up.

  5. I have to say that I get no joy when I hear and/or read about an Apple competitor having financial problems. In order for a good company to do well and grow it needs good competition to make them work that much harder. Hoping for the demis of Samsung does not make Apple, and it’s product stay stronger. It just make them think they can do no wrong and give up on innovation etc.

    1. Absolute nonsense. Apple does not need competition to spur it on to greater things.

      If you look at the market for PCs, where is the innovation on laptops or desktop computers? Apple’s circular Mac pro tower clearly wasn’t inspired by any rivals. How many previous PCs were shape and have no fans? The 5k iMac is sold at a price that PC manufacturers would have charged just for the display alone. Apple laptops adopted USB3 long before others did. Touchpads have always been massively better on Apple laptops yet rivals still haven’t got close to matching them after all these years. The only headline I noticed coming out of the PC industry recently was about Lenovo proposing to make a retro-looking laptop. I feel fairly confident that Apple will not be responding to that particular type of ‘innovation’ ( other than with laughter or dismay ). The PC industry is in a very poor state of health and from a financial point of view is seriously ill, yet Apple’s Mac range is selling better than ever, increasing sales while PC sales are falling and Apple is still innovating strongly.

      Apple doesn’t nee the PC industry in order to spur it on to innovation for Macs, neither does it need others in order to spur it on to innovate iPhones. With Apple, the innovation comes from within and is not driven by what rivals do.

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