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Samsung expects 7th quarterly profits drop as Galaxy S6 sales disappoint
Everything Goes
07-07-2015
Its tough at the top even for Samsung who are still under pressure from budget phone manufactures who can make cheaper and better phones than Samsung. Whilst Samsung's attempt to copy Apple with the Galaxy S6 has failed to make much impact. If you wanted to pay top dollar for an iPhone clone then you might as well simply buy an iPhone


Quote:
“Samsung expects that its operating profit for the second quarter of 2015 will drop four percent from the previous year, falling from 7.2 trillion won ($6.26 billion) in Q2 2014 to an estimated 6.9 trillion won ($6.12 billion) in Q2 2015. If the figures are correct, it'll be Samsung's seventh straight slip in profits, with the company's smartphones continuing to falter in the market even as its chip division improves its earnings.

"Market expectations for S6 sales were way too excessive," analyst Yoo Eui-hyung told Bloomberg before figures were released. "Analysts are revising down this year's shipment forecasts for the S6 because demand for the Edge model is exceeding supply, while the other version isn't selling well given its limited differences with the iPhone 6."”

http://www.theverge.com/2015/7/6/890...n-seventh-time
Mark in Essex
07-07-2015
I think the main reason is people have gone for other Android phones and with the likes of the Chinese phones they have to justify the price a lot more now and I think a few people have woken up to manufacturers taking the Mickey with the price..

I recon that they were taking the P a bit with non expandable memory and also the cost as it would not have been too bad if a 64gb version of the phone was less than £550 on release with the cost of a 128gb micro SD card now for less than £50.

Not as important, but a few people (like myself) like to have a battery that you can swap so that you can keep a spare in the car as backup.

Wonder if they will go back to having expandable memory with the S7 like LG did with their phones?
gillyallan
07-07-2015
I think they caused confusion by launching other models like alpha, edge and whatever else. I lost track of what was latest phone
aurichie
07-07-2015
Originally Posted by Everything Goes:
“Its tough at the top even for Samsung who are still under pressure from budget phone manufactures who can make cheaper and better phones than Samsung. Whilst Samsung's attempt to copy Apple with the Galaxy S6 has failed to make much impact. If you wanted to pay top dollar for an iPhone clone then you might as well simply buy an iPhone

http://www.theverge.com/2015/7/6/890...n-seventh-time”

Strangely enough, I checked the price of the S6 Edge with 128GB storage today. I was staggered to see it costs more than iPhone 6 Plus with 128GB. LOL. What planet are these South Korean copycats on?
jabbamk1
07-07-2015
Originally Posted by gillyallan:
“I think they caused confusion by launching other models like alpha, edge and whatever else. I lost track of what was latest phone”

The Alpha has seen surprisingly good sales in the UK when I last did a channel check.
jaffboy151
07-07-2015
If you start making phones too much like a iPhone then people will just get an iPhone, Samsung were so close to making a excellent phone then missed the target at the last minute by excluding the SD card slot. Plus not Helped by the whole lolipop thing. and releasing too many variations of models which confuse people.
swb1964
07-07-2015
The missing sd slot wouldn't be such a big issue if the standard size was 64 or even 128 gb
Superwomble
07-07-2015
Originally Posted by jaffboy151:
“If you start making phones too much like a iPhone then people will just get an iPhone, Samsung were so close to making a excellent phone then missed the target at the last minute by excluding the SD card slot. Plus not Helped by the whole lolipop thing. and releasing too many variations of models which confuse people.”

I agree completely. I will probably have my S5 until it drops to bits because I think its great, but I would not even consider getting an S6 because of the lack of micro sd slot and inability to replace the battery. Samsung should learn that you dont go backwards.
Aye Up
07-07-2015
I don't think its the supposed copying of iPhone

Quote:
“According to the preliminary report, Samsung is expecting 48.0 trillion Korean won in consolidated sales and an operating profit of 6.9 trillion Korean won, which translate to a 4% decline over Q2 of 2014. As Samsung’s semiconductor and TV business are expected to grow, the blame is being laid squarely at the mobile division. More specifically, sales of the company’s latest flagship smartphones – the S6 and S6 Edge.
Samsung lack of production capacity for the Galaxy S6 Edge’s display have been well documented and the company has been attempting to address the issue for months. However, the problem is not so much that Samsung isn’t able to keep up with Galaxy S6 Edge demand, but rather that the Galaxy S6 Edge has had a direct impact on sales of the regular Galaxy S6.”

http://www.androidauthority.com/gala...oor-q2-623118/

A few other Android sites have been saying the same thing, lots of people have wanted the S6 Edge in place of the "vanilla" S6, Samsung seems to be suffering problems on yield rating....that flash curved glass is difficult to manufacture apparently......not that they weren't able to consult a firm which specialises in those techniques

I wonder sometimes whether phone designs/makers are so concerned about having the latest features and paying through the nose for them, when really they could look to other areas of the market for inspiration.
Soundbox
07-07-2015
I think that the standard S6 looks like a very good phone - and good to use too. You can't really compare it to the iPhone surely.
Mark in Essex
08-07-2015
Originally Posted by Soundbox:
“I think that the standard S6 looks like a very good phone - and good to use too. You can't really compare it to the iPhone surely.”

That's what I was thinking - it looks nothing like the iPhone - surly the iPhone is copying Samsung if anything my increasing their size and having 2 size options.

What do people expect anybody else to do? Make a triangle or circle shaped phone instead of a rectangular one with screen covering most of it and a home button (saying that Samsung has a couple of extra passive buttons either side of the main home button)?

I think with Android there are so many manufacturers and other models that one model is never going to even get close to the iPhone sales (which is a good thing because all the Android models have to compete with the other ones and I guess Samsung must be realizing that people go to another Android manufacturer if they take the P).
jaffboy151
08-07-2015
That's probably just a much of the problem, Samsung have got a bit over confident lately and think they are the only real serious android alternative to the iPhone, and have started using apple like methods to try and boost yields from the consumer. For quite a while I'd say they've been right to think this, I'm on my 3rd Samsung android phone now after ditching Apple, over that time as other probably have, I've learned about the android system and how to get the best from it, but have also noticed a lot of the negatives that you come across are with the Samsung side of the system, not the android, whilst so far ahead in what I want in terms of phone design I put up with it. But competition is getting much stronger now in the android market with for me LG & sony producing much better phones now that they are a real alternative to Samsung now.
Soundbox
08-07-2015
Originally Posted by jaffboy151:
“That's probably just a much of the problem, Samsung have got a bit over confident lately and think they are the only real serious android alternative to the iPhone, and have started using apple like methods to try and boost yields from the consumer. For quite a while I'd say they've been right to think this, I'm on my 3rd Samsung android phone now after ditching Apple, over that time as other probably have, I've learned about the android system and how to get the best from it, but have also noticed a lot of the negatives that you come across are with the Samsung side of the system, not the android, whilst so far ahead in what I want in terms of phone design I put up with it. But competition is getting much stronger now in the android market with for me LG & sony producing much better phones now that they are a real alternative to Samsung now.”

The trouble is there are real limits that cannot be overcome so eventually even the budget makers will catch up. The limits are screens are now resolving better than the eye can resolve, the internet and gaming are (mostly) without glitches and everything just flows. Battery and OS are two areas not yet at their best for any phone.

I personally think the Edge variant is a step backwards. I held one in the shop and the screen had more reflections than the standard S6 and the top and bottom of the image were distorted looking - harder to hold too. People are buying it but it is straying into form over function.
alanwarwic
08-07-2015
Costs are high for Samsung. There is a good reason why competitors phonse sell for far less. Non OLED screens are as cheap as chips.

Plus we are peak smartphone. Most of us already have a high end 1080p or 1080p + phone. Not that we even need that. Ultra cheap 720p suffices.
Chrysalis
09-07-2015
so the poor sales rumours were true after all.

Obviously the smartphone market was going to hit saturation at some point.

Dont get why companies go all mental when they stop growing, samsung still is making billions every year from smartphones, hardly a disaster.

By the way as proof a sdcard could have been added, my old samsung galaxy ace has an external sim slot.
d123
09-07-2015
Originally Posted by Chrysalis:
“so the poor sales rumours were true after all.

Obviously the smartphone market was going to hit saturation at some point.
”

It doesnt seem to have hit Samsungs biggest rival that hard.

Quote:
“Booming iPhone 6 sales fuel Apple's second-best quarter ever

Apple just posted its second-best quarter ever -- and it didn't even have the holiday shopping season to help.
The company said it sold 61.2 million iPhones during the past quarter. That blew away even some of the most bullish forecasts.

IPhone sales typically soar during the last three months of the year and take a dive afterward. The new iPhone 6 debuted in September, helping Apple (AAPL, Tech30) post the most profitable quarter in corporate history during the holiday season. But Apple customers were still buying up an astounding number of iPhones in the first three months of 2015, and the company said a higher rate of people are now switching to iPhones than in the past.

Still, Apple said only 20% of iPhone customers have upgraded to an iPhone 6 or iPhone 6 Plus so far, meaning Apple's streak of mind-blowing sales shows no signs of abating.
”

http://money.cnn.com/2015/04/27/tech...pple-earnings/
blueisthecolour
09-07-2015
I bought a HTC One M8 last October and regret it. The second time I sent it back to be fixed I bought a ZTE KIS III for £40 to tied me over until it returned. I was amazed by just how much it could do.

I really don't see the point in paying £500 for a phone now. I mean I don't have a camera/mp3 player/sat nav etc so I do need something that can do it all but it seems like we can achieve that at a much cheaper cost.
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