Beleaguered Samsung’s phone shipments are stagnating

“‘Smartphones have now become a commodity.’ An executive at Samsung Electronics has attributed the failure of the Galaxy S6 Edge to the ‘commoditization’ of smartphones,” Lee Jeong-hun reports for The Hankyoreh.

“The company dispensed with the replaceable battery of previously successful models and poured billions of dollars into developing a metal case and a curved screen, but the results did not live up to expectations,” Lee reports. “In the end, these big changes did not make much of a difference to consumers.”

“The slump in smartphones led to a drop in revenues,” Lee reports. “Revenues at Samsung Electronics last year were projected by KTB Investment & Securities to be around 200 trillion won (US$168.1 billion), or about 6 trillion won less than the previous year (206 trillion won).”

“The company has tightened its belt, freezing salaries for executives and employees and slashing its marketing budget. This should nudge operating profit up by about 1 trillion won,” Lee reports. “But Samsung’s difficulties are unlikely to go away this year, because of the downturn in the market. The smartphone market posted a single-digit growth rate for the first time, and the average selling price of units continues to fall.”

Read more in the full article here.

MacDailyNews Take: Gee, that’s too bad, isn’t it? 🙂

Samsung’ difficulties aren’t because of “the downturn in the market.” They have to do with a total lack of foresight combined, of course, with a culture of theft:

Shackled to Android, Samsung has no point of differentiation. Apple will continue to take unit and the rest of the profit share from Samsung in the market segment in which they compete, and the bottom feeders will continue to take unit share as well. Tizen was Samsung’s only real hope, but they couldn’t manage to pull off such a large undertaking or, really, much of anything beyond mass producing inferior iPhone knockoffs. The world now sees: iPhone is the dream. If they have to settle for an Android phone until they can achieve iPhone, they can get the same thing Samsung offers at much lower prices from myriad Chinese Android handset assemblers (who are also knocking off Apple iPhones’ trade dress left and right).

Sooner or later, even Samsung will figure out there’s no profit to be had in Android handsets. — MacDailyNews Take, December 1, 2015

Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015

Beleaguered Samsung’s shares drop 4% after half-CEO warns of tough 2016 – January 4, 2016
Samsung finally to pay Apple $548 million in damages for copying iPhone, but then try to wrest it back – December 4, 2015
Beleaguered Samsung names new cellphone head in bid to stem market share losses to Apple iPhone – December 1, 2015
Ben Bajarin: ‘Samsung will be out of the smartphone business within five years’ – November 2, 2015
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015
Apple iPhone owns over 90% of smartphone profits, so why do others even bother fighting over Apple’s scraps? – October 8, 2015
Beleaguered Samsung’s future depends more on components than on copying Apple – October 7, 2015
Beleaguered Samsung finding it tough to compete Apple’s revolutionary iPhone – October 6, 2015
Apple’s iPhone juggernaut continues with record-breaking sales while Android peddlers fight over scraps – September 28, 2015
Apple’s iPhone owns 92% of smartphone industry’s profits – July 13, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013

[Thanks to MacDailyNews Reader “M J Miller” for the heads up.]


    1. I am sure they are very sad that the crazy money is drying up for them, but at least they got the crazy money for a while.

      Sometimes, you can lose and still win.

      Of course, Apple is winning by winning. Even better.

    2. Uh-huh. So what explains Apple’s stock woes.? Fanboys like you seem to think that Samsung’s stock devaluations are completely justified by the same people you criticize for Apple’s devaluation. So, who is deluding who?

  1. Correction: _SAMSUNG_ smartphones have become a commodity. Media analysts may jump to the wrong conclusion that this therefore bodes doom for Apple. But Apple probably contributed to Samsung’s failure.

    The world sees Samsung as low-class thieves. Consumers see Samsung phones as inferior products and cheap commodities. Samsung’s situation is the exact opposite of Apple’s, who have developed innovative and excellent products that represent good value.

  2. Am I in another alternate universe? Apple Just cut production of iPhone by 30%? is that correct? WTF?
    And we’re making fun of Samsung? Better keep your eye on the ball.

    What the hell is Apple doing? Can’t all of those employees think of ANYTHING else to sell? Christ, You telling me that they cant compete against the XBOX at very least? How the F does Android get into 90% of the market? 30% cut and the stock is in the dump and all that happens is making fun of samsung? When is Apple going to BURY Google? Go into frickin SEARCH already,, Google stock will plunge… The Fat Cats are hooked up at Apple, why make things that are amazing? I can think of 10 things for every apple product that would be an instant improvement,, 128 GB is the biggest HD in an iPad Pro? No SD card slot, or any kind of removable additional memory? Who gives a shit about thin? Apple TV is not amazing, FCPX is not for pros, on and on and on. Oh yeah, the watch. Does apple even have an advertising department anymore? My kids are addicted to the iPad, so do we see any commercials featuring kids addition and love for the product? No. Getting off on Samsungs failings is not a strategy. With a lot of Aapl, and skin in the game, I’m just pissed at having NO reason to go to the apple store… I suppose I can pick up some Beats headphones,, not.

    1. If I’m not mistaken, Apple ALWAYS cuts production in the first quarter of the calendar year because there is no holiday gift giving in that quarter, so of course there’s less demand than for the Christmas quarter. This is NOT news.

      Let’s wait and see what Apple says in their financial report at the end of January…

    2. You have listed a lot of things that would, in your opinion, be improvements, while in fact they wouldn’t.

      FCP X is still the most popular NLE among those who make their living producing video. If that is not pro, I don’t know what is.

      SD card slot in an iPad? That is PRECISELY why iOS platform is far better than Android. The SD card access has been the greatest source of frustrating among Android users; you must unmount before ejecting, you can never exactly know if the App is going to install internally or on the card, or if the app will store its data internally or on the card, and what happens to that app, or the phone, when the card is yanked out without being unmounted… The addition of the external drive would create precisely the kind of hassle it has for the Mac OS X, where you must ‘eject’ before pulling out, only ‘eject’ won’t work if you accidentally left some app open, and it is keeping a lock on some file on that card… And on the Mac, we only use those external devices for data storage, and not for installation of apps. Adding external data storage for the iOS would be the stupidest, most idiotic, asinine idea ever. Simply no.

  3. “The company has tightened its belt, freezing salaries for executives and employees and slashing its marketing budget.”

    Hopefully this also means the end of paid Samsung trolls, apologists, media analysts, and “cough” journalists…

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