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2016 is going to be a tough year says Samsung Electronics' CEO Kwon Oh-hyun

Posted: , by Alan F.

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2016 is going to be a tough year says Samsung Electronics' CEO  Kwon Oh-hyun
Samsung Electronics Chief Executive Kwon Oh-hyun cast a pall over the first work day of the New Year by calling for a tough business environment in 2016. The executive sees tough competition in business like chips and smartphones carrying over from last year. Korea Investment, a brokerage house in the country, now expects Sammy's fourth quarter earnings to be lower than expected.

Back in October, Samsung predicted that its operating profit during the current quarter would be lower than what it reported in the way of Q3 operating profit. This coming Friday, the company will make its official predictions for the fourth quarter, which the company said is a historically weak period for components sales. Korea Investment now sees Samsung scoring operating profits of $5.41 billion USD for the three month period that ended last month. That is down from its prior forecast of $5.78 billion USD.

Despite positive consumer response to Samsung's high-end smartphone models this year, the manufacture felt intense competition at the high-end from companies like Huawei, and at the low end by a plethora of low-priced Chinese smartphone manufacturers. Perhaps most telling is that the handset line most responsible for Samsung's top market share placement last year was the Samsung Galaxy J..

Many analysts believe that Samsung's problem stems from software that doesn't differentiate the company's smartphones from competitor's lower priced Android models. But even if Samsung were to revamp TouchWiz for 2016, a global slowdown over which it has no control could be troublesome for the company's mobile division.


source: Reuters

48 Comments
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posted on 03 Jan 2016, 22:39 1

2. IAMBLCKJ3ZUS (Posts: 295; Member since: 29 Sep 2015)


That's simply because Samsung needs to use it's own OS. The problem is all Androids start to look exactly the same the closer you get to stock Android. Every one cries about the one thing that makes Samsung stand out. In the End It will be Apple Iphone Google Nexus and if they can get their head out their arse Microsoft Surface Panos Phone.

posted on 03 Jan 2016, 22:41

4. zeeBomb (Posts: 2098; Member since: 14 Aug 2014)


Not just that tho. About the OS Google is helping Samsung optimize touchwiz to be even better than before, so it'll be only time until the next phone when performance will be a lot better

posted on 03 Jan 2016, 23:18 8

8. another1 (Posts: 157; Member since: 25 Dec 2015)


Touchwiz is absolute s**t. They need to get rid of it. I hope they have a revamp in development.

posted on 04 Jan 2016, 01:51 6

19. sgtdisturbed47 (Posts: 559; Member since: 02 Feb 2012)


What's wrong with the current iteration of TouchWiz? Have you personally owned an S6 or Note 5? I do, and it's fast, fluid, and stable.

posted on 04 Jan 2016, 03:14 1

24. engineer-1701d (unregistered)


bs i have gs6 and its ok but still could be improved as all can be

posted on 04 Jan 2016, 07:50 2

40. jellmoo (Posts: 1595; Member since: 31 Oct 2011)


Here's the problem with that statement, and it's honestly not that I don't believe you.

The problem is how many times it's been said. For at least the past 3 generations of Samsung flagships, it's been said. "Touchwiz is nice and smooth now!" And every time, it has turned out not to be the case. Hell, I bought a Note 4 on the premise that it was "nice and smooth" based on reviews and here say, and it was the laggiest most troublesome device I've ever owned.

It's honestly not a matter of whether it's true or not at this point, the notion that TW is laggy and bloated is so ingrained into our collective consciousness that it's really hard to shake.

posted on 04 Jan 2016, 10:05

43. j2001m (Posts: 2943; Member since: 28 Apr 2014)


Hm, it's the only time when it comes to Samsung phone the for the edge plus and note 5 pocketnow after the buzz as said there software is fast when they go to do the after the buzz, so I take that back if I Ws you

posted on 04 Jan 2016, 15:53

47. jellmoo (Posts: 1595; Member since: 31 Oct 2011)


I'm sorry, I'm not quite sure what you're trying to say here?

posted on 04 Jan 2016, 10:54

44. Lboogey6 (Posts: 281; Member since: 31 Jan 2012)


Alright im trying to understand how its the most troublesome device what are you doing with your phone dude ? on a day to day basis my phone does lag or stick or freeze. working with phones for 6+ years its hard to use any other os ok maybe a little more fluid but boring. htc yawn lg cool but that had its hiccups im not gonna use an iphone or else id get a flip phone.

posted on 04 Jan 2016, 15:55 1

48. jellmoo (Posts: 1595; Member since: 31 Oct 2011)


My Note 4 had the following issues: Menu lag, Recent app lag, Screen on took 2+ seconds from sleep, wifi would stop working and only start up again on a reboot, really bad GPS that was constantly being searched for.

Checking out XDA showed a good number of people experiencing the same issues. I've owned my share of devices, but the Note 4 was by far the worst. It was just plagued with issues.

posted on 04 Jan 2016, 03:01 7

21. Kumar123 (Posts: 801; Member since: 15 Jan 2015)


Run for your life. Samsung fans will kill you for telling the truth.

posted on 04 Jan 2016, 04:21 2

34. joevsyou (Posts: 813; Member since: 28 Feb 2015)


no it's not

posted on 04 Jan 2016, 04:38 5

37. Shocky (unregistered)


Stock Android is boring and lacks useful features, especially on tablets.

posted on 04 Jan 2016, 01:49 1

18. bur60 (Posts: 848; Member since: 07 Jul 2014)


This! It starts to get boring.. My z3c is boring looking stock, my P8 on the other hand looks amazing (and smoother)

posted on 03 Jan 2016, 22:39 1

3. zeeBomb (Posts: 2098; Member since: 14 Aug 2014)


Oh yeah no doubt about it. Chinese manufacturers upgraded their budget device game, so competition in China is muuuch harder. Plus how Samsung advertised the f%&# out of the S6, despite moving away from SD card slot and removable battery, its only time Samsung figured out a way to dominate sales like they did in Q3.

posted on 04 Jan 2016, 07:05

39. combatmedic870 (Posts: 631; Member since: 02 Sep 2015)


It's going to be a harder year due to qualcomm putting out a much better chip!

posted on 03 Jan 2016, 23:05 3

6. GreekGeek (Posts: 1276; Member since: 22 Mar 2014)


Maybe this'll help a bit, but sadly you don't listen to your customers

Completely Eradicate the 32GB in your flagships (S and Note) make 64GB as the entry level while maintaining that $700 + price point

For an added bonus, bringing back the SD slot would be a big boost

posted on 03 Jan 2016, 23:08 1

7. mercorp (Posts: 1027; Member since: 28 Jan 2012)


Maybe even swappable battery and waterproofing.

posted on 03 Jan 2016, 23:33

12. zeeBomb (Posts: 2098; Member since: 14 Aug 2014)


Swappable? Unlikely. Waterproofing is doable tho, but we'll only see that in the sub-flagship active series.

@cncrim: dat MKBHD quote huh? :p

posted on 03 Jan 2016, 23:27 3

10. cncrim (Posts: 826; Member since: 15 Aug 2011)


Rough because good phone is getting cheap and cheap phone getting good. Phone is hit it plateau even s3/s4 will doing just fine for average people.

posted on 04 Jan 2016, 03:17

25. engineer-1701d (unregistered)


love my gs3 still use it as mini tablet around the house

posted on 04 Jan 2016, 04:21

33. catze86 (Posts: 726; Member since: 07 Dec 2015)


Even my Old Samsung Wave still work just fine. If some asshole did not stole my beautyful Samsung i450, I have one the unique phones ever exist. Too bad, I dont have Omnia HD and Siemens M series.

posted on 04 Jan 2016, 00:11 2

14. Hallyu (Posts: 403; Member since: 21 Jul 2015)


Yes, because people loves to spend less to get more without worrying about quality. You want a very cheap phone with high end spec?, that's undoubtedly possible. Head to streets in some 3rd world countries, there you find hundred of unrecognized Chinese brands phones are on sale. Some doesn't even have warranty card to begin with. I like how they want high quality phones, but hesitate to throw a few more bucks to get to that point. Those people are the one who killed big boys like Nokia and Motorola. But Samsung is another story, Samsung would never become a victim. It is pretty big! Even if it loses its momentum, it still can find a way to turn the ship around by injecting more money and continue developing innovation for the whole world. This is Samsung for you. It doesn't care about money, about the profit, about the benefit. What it adheres to is advantage for all consumers. The truly innovative company like Samsung would never die, believe me.

posted on 04 Jan 2016, 03:08 5

23. ninja_master (Posts: 306; Member since: 27 Feb 2015)


"It doesn't care about money, about the profit, about the benefit."
EVERY company cares about money and profit, its the purpose of the company, you're either too dumb or brainwashed to see it.

posted on 04 Jan 2016, 07:52 1

41. g2a5b0e (Posts: 3724; Member since: 08 Jun 2012)


My guess is a little bit of both.

posted on 04 Jan 2016, 00:36

16. avishekmukherjee (Posts: 294; Member since: 09 Apr 2015)


Samsung 💜

posted on 04 Jan 2016, 01:32 2

17. Norris (Posts: 121; Member since: 26 Jun 2015)


Samsung can add an option to revert touchwiz to stock android from within the software(remove their skin).This will keep stock lovers happy too and they can have the great hardware along with stock android experience .

posted on 04 Jan 2016, 02:55 2

20. rishav20193 (Posts: 206; Member since: 18 Jul 2015)


i think the best option is to give us option to remove any software we don't actually use (s health & all that) & make them available for download in samsung store (in case someone wants them back)

posted on 04 Jan 2016, 03:20

26. engineer-1701d (unregistered)


thats what i have always said give us stock and allow galaxy app downloads

posted on 04 Jan 2016, 04:11

28. catze86 (Posts: 726; Member since: 07 Dec 2015)


Well, a few of awesome apps only work with TW.

posted on 04 Jan 2016, 08:20

42. rishav20193 (Posts: 206; Member since: 18 Jul 2015)


even if not exactly....stock android !!
give us touchwiz but options to remove stuffs v dont use !!

posted on 04 Jan 2016, 06:08 1

38. Shocky (unregistered)


Touchwiz is a lot more than a skin, so no they can't add an option to revert to Touchwiz.

You can install themes that look like stock Android but performance and smoothness will be exactly the same.

posted on 04 Jan 2016, 12:50

46. M.O.A.B (Posts: 172; Member since: 13 Feb 2015)


so you want samsung to remove the whole touchwiz framework to revert to the damn very boring stock android in samsung phones to keep the tiny sample of stock lovers happy ??

dude thats impossible .. either the phone will come out of the box with touchWiz or stock android .. but not with touchwiz and if you want you can revert back to stock,, so you want all of the hard work and optimizations done to the touchWiz framework to be wasted??

also that means that the company doesn't trust it's product when it gives you the ability to completely remove it's own software .. that just doesn't work in real world .. a company like samsung wont ever do that

if you love stock then stick to nexus or get any good chinese phone .. most of them come with stock android

samsung phones are not for you

posted on 04 Jan 2016, 03:02

22. mcyener (Posts: 3; Member since: 03 Nov 2015)


Switching to Tizen OS can make a difference and it is believed that this was Samsung’s strategic approach from day one. Huge marketing budgets of Samsung can be explained this way. A brand familiarity in place with a steady user base in the medium term might provide for a smoother transition into a new OS; conversely the enormous success of the Android ecosystem currently makes this change difficult as people get used to almost free-of-charge environment easily and quickly.

Designing a new OS may be easy, but the problem is building the ecosystem around it. Both Symbian and Blackberry operating systems struggled in the past because of a lack of significant application base. Developers still prefer iOS as they make more money from it. Microsoft is also quite desperate to build an adequate application base to compete with others. Despite its deep pocket, it is still a distant follower.

posted on 04 Jan 2016, 03:24

27. JMartin22 (Posts: 1969; Member since: 30 Apr 2013)


Lol @ their problems being software... As someone mentioned already, it's competition from the high end spectrum (now that Apple has standardized sized phones) and competition from the low end spectrum. Lowly Chinese handsets boast "tempting" specsheet devices that either break even or that they sell at a loss.

Couple that with market saturation, of course they aren't going to pull the same numbers they were years ago, unless they're in a very unique position like Apple where they can leverage such a privilege of having control over a distinctly different and established platform from the one Samsung has to share with a dozen other manufacturers posing as competition. With all these factors in mind, they still do pretty well considering they're really the only other ones making money besides Apple.

It's not customers being dissatisfied either. People come up with these nonsensical reasons to justify their irrationality when it comes to trying to tear down Samsung.

posted on 04 Jan 2016, 04:16 2

30. catze86 (Posts: 726; Member since: 07 Dec 2015)


Android fans become greedy when they deal with Galaxy phones. They
always want MORE than it should be. I never hear people bitching
Nexus because no MiscroSD and no removable battery.

posted on 04 Jan 2016, 04:15 1

29. catze86 (Posts: 726; Member since: 07 Dec 2015)


Android fans become greedy when they deal with Galaxy phones. They always want MORE than it should be. I never hear people bitching Nexus because no MiscroSD and no removable battery.

posted on 04 Jan 2016, 04:20

32. joevsyou (Posts: 813; Member since: 28 Feb 2015)


All phones are starting to become too alike.

It's time for samsung to forefront and start doing things alike no other. Starting with taking control back from carriers and removing trash paid bloatware apps. People who like android will praise them so much

posted on 04 Jan 2016, 04:30

35. catze86 (Posts: 726; Member since: 07 Dec 2015)


That is why I never agree if Samsung goes STOCK. Let Stock special for Nexus.

posted on 04 Jan 2016, 04:30

36. catze86 (Posts: 726; Member since: 07 Dec 2015)


That is why I never agree if Samsung goes STOCK. Let Stock special for Nexus.

posted on 04 Jan 2016, 12:40

45. M.O.A.B (Posts: 172; Member since: 13 Feb 2015)


"Many analysts believe that Samsung's problem stems from software that doesn't differentiate the company's smartphones from competitor's lower priced Android models"

that was not well structured sentence PA .. the link refers to an article that talks about software optimization, while what can be understood from the text is that the company doesn't offer a unique software experience.. just like saying it's almost stock android which doesn't fit samsung's software by any mean .. you can say that about HTC or sony or most of the chinese phones (because most of them run stock android) but not samsung !

since the s3 samsung has been adding too many software features (which people like to call gimmicks) and thats what differentiate samsung from others and thats what keep me buying samsung phones (in addition to the great hardware) .. TouchWiz and it's features

haters will keep hating on touchwiz .. but it will still be the best and richest android skin (actually its alot more than a skin) that ever happened to android.

posted on 04 Jan 2016, 19:25

49. T-Dizzle (Posts: 111; Member since: 21 Jul 2015)


Over priced and over skinned. Sorry Sammy but ads aren't innovation. You had better up your innovation game. I am a two time GS owner, not some hater.

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