“Despite introducing the Galaxy S6 and S6 Edge, Samsung appears to have failed to reverse its smartphone market share declines in 2015 Q2,” Mark Hibben writes for Seeking Alpha. “Meanwhile, Apple is on track to post about a 40% y/y unit sales gain for iPhone. Samsung’s recent guidance indicates an 8% y/y decline in revenue, while Apple’s revenue for the June quarter may increase by about 30%. The different trajectories of these companies can be explained by their sales performance in China.”
“In calendar Q1, Apple’s revenue for Greater China grew by 71% year-over-year to $16.8 billion. The sales growth in China accounted for over 56% of Apple’s total revenue growth for the quarter,” Hibben writes. “Based on the expectations of prominent Apple analysts such as Katy Huberty and Steve Milunovich, Apple is likely to post another extraordinarily strong quarter. Expectations are for iPhone unit sales of better than 50 million and total revenue of about $48 billion.”
“Clearly Apple is on a totally different trajectory than Samsung, with iPhone unit sales up over 40% y/y and total revenue up by over 28%, if these expectations are met,” Hibben writes. “The contrasting trajectories of Apple and Samsung I still believe speak to the fundamental business advantages of the Apple iOS ecosystem. As I and many others have pointed out, there’s a fundamental difference in profitability between iOS and Android that Android phone makers have difficulty coping with. I’ve argued that this difference in profitability gives Apple a competitive advantage in that it can invest so much more in making its ecosystem more appealing to consumers”
Read more in the full article here.
MacDailyNews Take: The worse things get for Samsung, the more we believe in karma.
ESAD, Samsung. ESAD.
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Investors lower Samsung expectations amid Galaxy S6 sales doubts – July 6, 2015
Lower than expected Galaxy S6 sales fail to drag struggling Samsung back into profitability – July 1, 2015
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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
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Apple iPhone takes smartphone market share from Android around the world – March 4, 2015
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