South Korean dishwasher maker Samsung’s mobile profits fall as consumers pass on $1,000 iPhone knockoffs

“Samsung Electronics Co. may have misdialed on the $1,000 smartphone era,” Timothy W. Martin reports for The Wall Street Journal. “Fewer buyers than expected have shelled out top dollar for Samsung’s new flagship device, the Galaxy S9, with top-end versions approaching the $1,000 mark. The consumer rebuke, plus heavier marketing expenses, caused second-quarter mobile-unit profits to nosedive by one-third from a year earlier.”

“Lee Kyeong-tae, vice president of Samsung’s mobile-communications business, on the company’s earnings call Tuesday… acknowledged rising price tags were ‘drawing market resistance,'” Martin reports. “Samsung is absorbing the largest blow from a smartphone industry that is struggling with a historic sales slump. Prices can’t rise much more, if at all, and Samsung is losing ground to cheaper Chinese rivals… Apple reports its quarterly results on Tuesday. Analysts expect the Cupertino, Calif., company to deliver a 2% increase in iPhone units and a 17% increase in sales on higher average selling prices, according to FactSet.”

Martin reports, “The phone struggles come just two years after Samsung faced a global recall of overheating Galaxy Note 7 devices, which ultimately cost it around $6.5 billion and led to a widespread ban on carrying the device onto aircraft amid fears it was a fire safety hazard.”

Read more in the full article here.

MacDailyNews Take: The South Korean dishwasker maker is highly confused. The best any Android phone will ever be is nothing more than a poor man’s iPhone.

SEE ALSO:
Anti-iPhone X ads show why South Korean dishwasher maker Samsung keeps losing to Apple – July 27, 2018
Apple takes U.S. market share from Android, dominates with 8 iPhones out of 10 best-selling smartphones – July 26, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Higher income U.S. states use Apple iPhones; lower income states use Samsung Galaxy phones – September 27, 2016
Apple’s App Store is destroying Google Play in services and subscriptions – April 18, 2018
Apple App Store users spent nearly double that of Google Play users in Q417 – January 26, 2018
Bernstein: Google to pay Apple $3 billion this year to remain the default search engine on iPhones and iPads – August 14, 2017
Higher income U.S. states use Apple iPhones; lower income states use Samsung Galaxy phones – September 27, 2016
iOS users are worth 10X more than those who settle for Android – July 27, 2016
Apple’s App Store revenue nearly double that of Google’s Android – April 20, 2016
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
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
iPhone users smarter, richer than Android phone users – August 16, 2011

15 Comments

  1. The problem w/ Samsung premium smartphones is that consumers now more than ever view them as disposable/short-term device purchases..which is why less users are willing to shell out premium $$ for them. If you are going to lay down $1K+ for a smartphone, it had better have good resale value, be durable and be somewhat updateable..

        1. Once again you air your shrill narrow minded opinion without reasoning to back it up.

          I don’t begrudge Lamborghini for making cars that cost small fortunes nor the people who buy them. Supercars can do things that no normal car can do. I wish all the best to people who challenge themselves to become expert drivers and find the limits of man & machine. If Apple offers premium performance for a premium price, they will always charge what the market will bear. To criticize businesses for pricing without explanation is whining.

          What goeb is channelling is two things:

          first and foremost he’s an old argumentative cheap bastard who thinks only of himself. Thus he thinks he is always correct and he dismisses anyone who brings forth an alternative view, even with facts and data.

          Second, something that an objective iPhone user can agree with: the price premium for faceid is too much. The oled screen is ruined by the notch for people who view video, the lack of headphone jack remains an inconvenience. The iPhone 8 is actually faster. So if you are a value oriented consumer, the X is a dumb choice.

          Once again Apple is leveraging its name to sell premium priced fashion that doesn’t actually have adequate substance to make it a good choice for most people. Goeb could have been objective and stated this in a reasonable way, but Mr. Politics just can’t be reasonable.

          1. So who are you hiding behind an instantly created screen name? Not going to say, gee what a surprise. I’ll roll with it.

            “Second, something that an objective iPhone user can agree with: the price premium for faceid is too much.”

            Thank you for making my point!

            “The oled screen is ruined by the notch for people who view video, the lack of headphone jack remains an inconvenience.”

            Two big mistakes and thank you for making my point, again.

            “The iPhone 8 is actually faster. So if you are a value oriented consumer, the X is a dumb choice.”

            Lastly, thank you for agreeing with me. Not worth the price is all I was saying and you posted excellent reasons.

            ~Cheers, Grumpy Old Man …

  2. One of the most highly respected marketing guys of all time in the 20th century wrote in his opus on sales strategy that you NEVER mention your competitor in an advertisement.

    Samsung never learned the copy writing trade & they are paying dearly for that mistake.

  3. “The phone struggles come just two years after Samsung faced a global recall of overheating Galaxy Note 7 devices”

    Wow, that’s an understatement if ever I heard one, more like rewriting history. The phone didn’t “overheat” they burst into flames.

    1. You like their laundry machines… you mean the ones that also catch fire? And despite being subject to recall, Samsung is still lagging living up to their legal responsibilities? Stay classy, Samsung………

Add Your Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.