Beleaguered Samsung loses $44 billion of value in worst streak since 1983

“Tepid demand for Samsung Electronics Co.’s newest Galaxy smartphones triggered a fifth straight monthly decline for the electronics maker, wiping out about $44 billion in market value since April,” Jungah Lee reports for Bloomberg. “”

“Shares of the world’s biggest smartphone vendor slumped 8.1 percent this month, extending their longest losing streak since December 1983,” Lee reports. “Samsung dropped almost $12 billion of value in August alone as the South Korean company surrendered market share to Apple Inc. and Chinese competitors.”

MacDailyNews Take: Beleaguered Samsung is the “world’s biggest smartphone vendor” in unit shipments only. Certainly not in profit.

Apple’s iPhone owns 92% of smartphone industry’s profits – July 13, 2015

Jungah Lee might want to ask Michael “Delisted” Dell how that “strategy” culminates.

“‘We all know its smartphone business isn’t doing well,’ said Lee Seung Woo, an analyst at IBK Securities Co. in Seoul. ‘I can’t really figure out when the stock will stop declining. The fundamentals look problematic,'” Lee reports. “One of its latest models, the Galaxy Note 5, was criticized by reviewers and customers this month as the company acknowledged that the device can break if the stylus is inserted backward into the storage slot.”

Read more in the full article here.

MacDailyNews Take: More pain, please, karma!

Samsung stole trade secrets from TSMC to win Apple A9 stamping deal – August 26, 2015
Apple’s dual-core iPhone 6 destroys Samsung’s octa-core Note 5 in speed test – August 26, 2015
Major Samsung Galaxy Note 5 design defect: Inserting ‘S-Pen’ backwards permanently damages device – August 25, 2015
Gartner: Apple iPhone sales increase 36%, beleaguered Samsung declines 5.3% YOY in Q215 – August 20, 2015
Samsung drops $10 billion in market value on poor demand for Galaxy S6 phones – July 31, 2015
Samsung will never overcome Apple’s advantage in mobile device profitability – July 30, 2015
Apple iPhone shipments show impressive growth as Samsung falls – July 30, 2015
Samsung offers downbeat outlook for year ahead of new Apple iPhones – July 30, 2015
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


    1. I hate Samsung as much as the next guy here, but honestly I think it is a stretch to call Samsung “beleaguered”. Perhaps their smartphone branch is hurting, but they have their hands in so many other areas, I doubt they are in trouble as a company.

      1. You need to understand the history of that word. “Beleaguered” was applied to Apple ad nauseum in its darkest days. So MDN now joyfully applies that name to foundering competitors as they sink.

        They keep on using that word. I think it means what they think it means.

  1. While Samsung’s fundamentals may problematic, and Apple’s are solid, Apple still lost over $100b in market value since its last high of ~$134, so hooting about Samsung’s market valuation loss is a bit lame.

    Market value seems to have little linkage to a company’s fundamentals these days.

    1. Your point is valid, but Apple’s market cap is over three times what Samsung’s is. Apple would have had to lose about $145B in market value to equal Samsung’s loss. In other words, Samsung’s loss is about 50% bigger than Apple’s as a percentage of company value.

    2. I’ll point out the obvious:
      – The recent drop in AAPL had nothing at all to do with Apple. Thank China’s economic self-manipulation failures and lots of panic on WallNut Street.
      – The recent drop in Samsung had to do with China & panic as well. But the Samsung fall also was due to the ongoing decline in sales and profits in their line of ‘smart’ phones.

      Apples versus rotting oranges.

    1. I’ve recently bought additional shares in AAPL and feel that they will do well in the future because Apple’s fundamentals and prospects are good. I couldn’t imagine many people coming to a similar conclusion with regards to investing in Samsung’s mobile division at the moment.

      1. How come, then, Apple has the highest market cap?

        What part of the market is rigged when Apple is by far the biggest company out there, bigger even from the biggest oil companies?

  2. The game has changed. Excellence and profits matter little anymore apparently. All about rigging the game and scaring the small investors to swoop in and scoop up the profits. Understand that and hold long unless you really know what you’re doing.

  3. Beleaguered Samsung is the “world’s biggest smartphone vendor” in unit shipments only. Certainly not in profit.

    Not in profit, and not in revenue; Apple’s iPhone’s business is much bigger than Samsung’s phone business.

  4. I don’t know what ppl generally say about this, but back in the days of pre-Apple cell phones, Samsung software was the most interesting and intuitive, compared to Sony Ericcson, Nokia and Motorola phones I had.

    Can anyone concur?

      1. Some Samsung cellphones ( named Blackjack ), looked liked Blackberrys. Other Samsung phones ( called the Blade ), looked like Motorola’s Razr range. Samsung also offered a vacuum cleaner that looks like a Dyson.

        Samsung have always made stuff ( and frequently named stuff ) so that they can be mistaken for the current market leading product in any particular category.

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