Beleaguered Samsung warns of tough 2016 after 4Q profit plunges 40%

“Samsung Electronics reported Thursday a bigger-than-expected decline in fourth quarter earnings as its mainstay smartphone and semiconductor businesses suffered from weakening global demand for consumer electronics,” Youkyung Lee reports for The Associated Press. “The South Korean company also warned a recovery in profit is unlikely during the first half of this year due to a tough business environment.”

“Samsung’s net profit for the October-December period plunged 40 percent from a year earlier to 3.2 trillion won ($2.7 billion),” Lee reports. “The result fell short of expectations, even after considering the negative impact from foreign currency exchange rates estimated at 400 billion won. A survey of analysts by financial data provider FactSet forecast net profit of 5.1 trillion won.”

“The latest results reflect additional challenges for Samsung as its semiconductor business, which helped offset declining earnings from smartphones since mid-2014, joined the mobile division in a profit slowdown,” Lee reports. “For the full year, it earned 19.1 trillion won ($15.8 billion), down 19 percent from the previous year and the lowest level in four years. It was the second year in a row with a decline in annual net income… The mobile phone business posted its second straight quarterly profit decline with 2.2 trillion won in operating income.”

Read more in the full article here.

MacDailyNews Take: Apple earned more profit last quarter, $18.4 billion in a mere 91 days, than Samsung did all year.


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


  1. It will mecome very evident very soon that Tim Cook’s evaluation of slow failing and weak world macroeconomics is real and that in that environment , Apple is still the world’s most profitable leading and innovative country – maybe the only one stiil leading in all profitability and fanfare.

    Good luck with the FUD, both to wall st and the Donald.

  2. It’s going to be interesting to see how each tech company deals with the current market conditions.

    Apple has stated very clearly that business is unlikely to be as good as it has been recently, but will still be amazingly good. Other companies might be tempted to take a ‘steady as she goes’ approach and keep their fingers crossed.

    I think that Apple’s approach gives me a lot more confidence in their ability to steer through rough waters, but all that Wall Street can see is that profits won’t be growing as much as they previously did. I’d be intrigued to hear which tech companies Wall Street believes will have better prospects amid the turbulent conditions that we are currently experiencing.

    Samsung is suffering from sharply reduced smartphone sales ( not flat like Apple ) and lower profitability ( Apple’s margins increased ). Samsung can only keep component sales numbers high by selling for lower prices, while Apple’s iPhones are selling at a higher average selling price.

    Ironically, it’s likely that part of Apple’s increased margins is due to Samsung having to sell components at cheaper prices.

  3. Good.

    Now, wouldn’t it be great if Samsung copied Apple one more time, tore apart its parasitic outlook on the world, including its crap management, and became a beneficial company to the world, like Apple? There’s a positive thought offered as Samsung sinks into its sulfurous schism of so screwed suffering. 😀

    1. Derek, I agree with many of your comments. But I wholeheartedly disagree with this one. No, no, no, it would be much better if Samsung were to copy Compaq, Dell, or …even the bankrupt coal companies ! ha ha ha

      1. Well, I figure I’ve been so mean, cruel, condescending, snarky and critical toward Samsung that it would balance the energies of the universe if I offered them one kind wish as their Titanic scheme of fraud, plagiarism and ripoff sank into the abyss of their own making.

        So I believe Samsung could turn around their company into something positive? Clap if you believe in faeries.

  4. Only after many or most other companies report abysmal profits will Apple’s results be seen in their proper perspective. In a tough business environment, Apple will stand out as a strong, well-run company. People should remember that Apple has had to work very hard in difficult business environments for most of its existence. It is in Apple’s DNA. And as TC said, Apple will invest through the tough times to take advantage of them. Not may companies are in a position to do that.

    Separately, what many seem to have missed about Apple’s results is how well it performed when foreign exchange effects were accounted for. Without a 15% adverse FX effect on the 66% of Apple’s sales that are made “overseas”, Apple’s financial results would have been roughly 10% higher. Given the tough business environment that people are talking about, that is just amazing to me.

    1. The article says “Samsung Electronics” though. I realise they make tellys and fridges, but unless they break out their phone business I don’t see how else you can make a comparison.

  5. Buy AAPL fast while it is still on sale – this really puts Q1 in a different perspective when we see that Apple absolutely SPANKED Samsung in profitable high-end flagship smartphone handset sales.

    Just anecdotally, several late adopter friends and business associates just got the 6S Plus this year and my 6Plus is feeling long in the tooth – getting the 7 on day 1.

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