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A drop in Galaxy S4 sales causes Samsung to plan a strategic conference with investors

Posted: , by Michael H.

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A drop in Galaxy S4 sales causes Samsung to plan a strategic conference with investors
Samsung is a very big company that has an extremely diverse product line including TVs, appliances, and of course mobile products. But, for all of that diversity, Samsung still gets about two-thirds of its profits from mobile devices. So, when Galaxy S4 sales dropped recently, it worried investors and analysts enough that Samsung has planned a strategic conference to talk about the future plans of the company.

Apparently, Samsung's mobile profits have dropped around 13% over the past three months, and that has investors getting a bit antsy. The thinking is that the high-end smartphone market, where Samsung has been pulling in the majority of its profits, has been saturated. The low-end market, especially in emerging markets is where the big growth opportunities are for smartphones, but it is also a more difficult segment from which to generate profits. 

With that in mind, Samsung is planning a strategic conference with about 400 investors and analysts in Seoul on November 6 to talk about its longer-term growth strategy. A Samsung executive said about the conference, "It's been a while since we last communicated our longer-term business plan, and this year's event is largely aimed at discussing our latest strategy and vision for 2020." 

source: Reuters

53 Comments
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posted on 06 Sep 2013, 01:01 11

1. wicpromd (Posts: 266; Member since: 20 Aug 2013)


Rise of Sony is getting Near
or Lg???

posted on 06 Sep 2013, 01:10 15

2. lee480 (Posts: 177; Member since: 24 Sep 2012)


Sony. LG sells more thanks to the Nexus. Remove the Nexus in the numbers and LG will be nothing.

posted on 06 Sep 2013, 01:14 11

4. LetsBeHonest (Posts: 982; Member since: 04 Jun 2013)


I think its LG G2 because Xperia Z1 is not yet available on market. When it available it'll definitely give s4 some trouble .
btw note 3 is on the way...

posted on 06 Sep 2013, 01:36 3

10. SonyFindOneDroidple (Posts: 488; Member since: 11 May 2013)


For the "past three months".. duhh G2 isnt yet widely available, trying to correct someone through the use of another incorrect statement..

Ip5, Htc One, Xperia Z and other attractive midrange xperias, Optimus G, G Pro, Butterfly, Lumias, emerging markets of Lenovo, Huwaei, Xiaomi, Oppo and the likes

posted on 06 Sep 2013, 02:01 1

16. LetsBeHonest (Posts: 982; Member since: 04 Jun 2013)


Oops my bad
thnx buddy

posted on 06 Sep 2013, 01:39 1

11. SonyFindOneDroidple (Posts: 488; Member since: 11 May 2013)


And add the struggling over-all market of smartphones..

posted on 06 Sep 2013, 02:05 1

17. dorianb (Posts: 422; Member since: 24 Oct 2012)


LG my @**

posted on 06 Sep 2013, 02:16 9

19. rd_nest (Posts: 813; Member since: 06 Jun 2010)


None, samsung is selling more phones than anyone. The gap is getting larger. Thee profit is also increasing.

It's that the share prices are falling despite that. some people just have too much expectation. some people just expect them to sell 100 million GS4 this year. which is ridiculous. 50million I may understand. double that - no way possible.

posted on 06 Sep 2013, 07:46 1

33. jdoee100 (Posts: 308; Member since: 04 Jun 2013)


Michael H. seems to have problem with facts, and this wasn't the first time this happened. It wasn't the profit that went down by 13%, but "Shares in Asia's most valuable technology firm have fallen 13 percent over the past three months(reuters)."
"A drop in Galaxy S4 sales causes Samsung to plan a strategic conference with investors," this statement is not supported by the referenced article, the real reason seems to be drop in shareprice.

posted on 07 Sep 2013, 05:31

51. Trex95 (Posts: 571; Member since: 03 Mar 2013)


And the funny thing that some statics mentioned that S4 sold 20 million and other mentioned that Samsung shipment 20 million S4!

posted on 07 Sep 2013, 12:37

53. Ronny666 (Posts: 108; Member since: 08 Jun 2013)


Still sold more than 20 million but sales just dropped because there are many choices of smartphones now. Basically it is saturated. What? Sony? They have to first beat ZTE, Huawei, Lenovo, Nokia, Apple and LG before even dreaming about beating Samsung's sales.

posted on 06 Sep 2013, 05:54 2

26. Mxyzptlk (Posts: 4056; Member since: 21 Apr 2012)


That bandwagon is running it's course.

posted on 06 Sep 2013, 13:35 3

44. tedkord (Posts: 5129; Member since: 17 Jun 2009)


Yes it has. That's why the iPhone is down every year, and now under 15% share.

posted on 06 Sep 2013, 09:39

39. Rorschach (Posts: 40; Member since: 26 Apr 2013)


The problem is not Samsung, it's the carrier upgrades. People cannot afford to buy a new phone every single year. If most people got the S3, they won't be eligible for a subsidized upgrade to the S4.If Samsung found a way to provide cost efficient upgrades, then we would all buy their phones annually. But until then, most of us cannot afford to pay $600 off contract.

posted on 07 Sep 2013, 05:13

49. Trex95 (Posts: 571; Member since: 03 Mar 2013)


Rise of LG and Sony and upcoming IPhone 5S.

posted on 06 Sep 2013, 01:12 1

3. zachattack (Posts: 590; Member since: 31 Jul 2013)


Sony kinda blows so i wouldn't think it's because of them. I think it's funny as hell though samsung doesn't sell their poop phone anymore so they call a meeting. WHY, WHY ISN'T OUR S4 SELLING "maybe because it can't compete with new phones and looks like all our other products" YOU'RE FIRED JIMMY

posted on 06 Sep 2013, 01:17 16

6. LetsBeHonest (Posts: 982; Member since: 04 Jun 2013)


Still its a nice phone (not a poop phone) and remember its almost 6 months old. Everybody has their time buddy...

posted on 06 Sep 2013, 07:19 1

30. Googler (Posts: 813; Member since: 10 Jun 2013)


I think that's mostly it, it's age is showing. Instead of quarter to quarter analysis, the important statistic is how many total units have sold, which we don't get from this article.

In contrast the iPhone sales go up and down from quarter to quarter all the time. When they dip, no one really cares because they know it's mostly due to new models coming out.

And I'm sure they aren't holding a meeting just to discuss the S4 sales, it's very likely a long term strategy meeting to discuss future upgrades and what direction to take their handsets in order to stay competitive. In other words, business as usual.

posted on 06 Sep 2013, 07:46 1

32. Shatter (Posts: 2031; Member since: 29 May 2013)


S3 was beaten and sales dropped after 6 months too.

posted on 06 Sep 2013, 01:17 16

5. mayur007 (Posts: 460; Member since: 10 Apr 2012)


Still sony cannot be no.1
They have the worst after sales service.

And the worst customer service..

posted on 06 Sep 2013, 01:20 12

7. anthonyspapa (Posts: 18; Member since: 24 Jan 2013)


They also got to realize that people have 2yr plans so most S3 owners won't go for the S4. Also some of the people able to upgrade their phone are waiting for the Note 3 (and other phones of course).

posted on 06 Sep 2013, 01:57 3

14. KillgoreTrout (Posts: 53; Member since: 04 Sep 2013)


I am sure they are well aware of those things, it is not like the company is run by children. What you need to realize is that the real money is in getting people who don't have any smart phone currently and those people are mainly looknig for cheaper phones.

posted on 06 Sep 2013, 01:22 1

8. Arthurhkt (Posts: 123; Member since: 19 Apr 2012)


Well not surprise with that, every company will have a peak period and decline, same as all previous company such as Nokia, HTC, BlackBerry and Apple, i guess it should be a new leader will rise to a market, don't get me wrong, i am not a Apple hater, it just a economic point of view from consumer.

posted on 06 Sep 2013, 01:23 1

9. MotorolaX (Posts: 17; Member since: 04 Mar 2013)


What is the difference b/w s4 and s3 how many features Samsung adds in s4 all software features from s3 added only some new features added but it's not worthy!! That's why Samsung is struggling..

posted on 06 Sep 2013, 07:47 2

34. Shatter (Posts: 2031; Member since: 29 May 2013)


The S4 has over double the perfomance of the S3 and much better hardware in every aspect. Some people just forget that Samsung usually upgrades everything inside the phone once a year.

It is worth it alone just to upgrade from a snapdragon dual core S4 with adreno 225 to a snapdragon 600, the s4 dual core SOC lags on the UI and sucks for gaming.

posted on 06 Sep 2013, 16:48

47. alouden (Posts: 212; Member since: 18 Oct 2011)


Exactly! Had I not switched carriers (and needed a t mobile phone with LTE) I would NOT have gotten the GS4. And not because GS4 is a bad phone. I had a GS3 and did not think the S4 was a huge upgrade. Yes, I know they upgraded the chipset and the GS4 has a quad core...But both phones are extraordinary.

I wouldn't say struggling, though. They are just not seeing the fantastic reception that they did with the GS3. Samsung is a victim of the GS3's success. People's expectations for the GS4 were unreasonably high.

posted on 06 Sep 2013, 22:08 1

48. heyhi (Posts: 125; Member since: 19 Feb 2013)


if you think like that, whats the difference between Z and Z1? they look the same, but have their differences.
Samsung changed specs, hardware and software features. I wouldnt upgrade because of the design that is almost the same.
Sony changed the frame, put more height and weight, hardware and some camera features.

If i had the Z, I would not upgrade either. They also look the same. I would wait untill next year, since Sony releases 2 flagships in 1 year. Not worth the upgrade in my opinion.

Its impossible to any brand give something revolutionary every year.

Dont expect that cause youre gonna be frustrated every year.

Maybe im wrong but, looking at your nickname, i remembered of course the Moto X and i think Motorola will struggle, MAYBE. I wasnt expecting something revolutionary, but at least, you know, something at the level of the other flagships.

.

posted on 06 Sep 2013, 01:42 5

12. taikucing (unregistered)


I think the problem is that people don't need to upgrade from S3 to S4. S3 is still future proof

posted on 06 Sep 2013, 01:47 2

13. Suo.Eno (Posts: 204; Member since: 17 Feb 2013)


"The thinking is that the high-end smartphone market, where Samsung has been pulling in the majority of its profits, has been saturated."

And who should take the blame for playing a huge albeit probably unnecessary role at "saturating" the market? Hard to swallow but undeniably true it's no one else but Samsung.

S4 in particular should serve a humbling yet crucial lesson. 1st it's the gimped by design Exynos 5410 orig i9500. Then as usual to cover the fact that they can't ramp up the SoC's production in advanced out came the i9505 Snapdragon 600 LTE which is a fine (if not better imo) alternative. But they didn't just stop there and another i9505 only this time it's a Google Play Edition, still somewhat acceptable considering internationally it's not really available. Finally the real piss in the bucket was when people realized that Samsung were actually able to put out not 1 but 2 separate native (South Korean) S4s; Exynos 5410 LTE and Snapdragon 800 LTE-A respectively which ultimately meant that fence sitters gave up and waited out for rival models because remember that all of the above mentioned changes happened in less than 5 months frame, a surefire way to drive off would be upgraders away.

posted on 06 Sep 2013, 01:59 1

15. GeekMovement (Posts: 1519; Member since: 09 Sep 2011)


if Sony even wants to think about no. 1, they'd better start bringing their flagships to the US market. because it's the biggest? no, but it is a fairly large smartphone market still.

plus we'd love to get our hands on the Z1.

posted on 06 Sep 2013, 02:08

18. Fuego84 (Posts: 290; Member since: 13 May 2012)


I got an idea Samsung, don't release a better smartphone every year it's so fast. Imagine I need a phone why should I get an s4 if it's almost been a year I'd rather wait for the next one unless I know there won't be a next one till another whole year. Just upgraded the devices and they'll sell themselves.

posted on 06 Sep 2013, 02:35 2

22. av911 (Posts: 151; Member since: 19 Nov 2012)


Yeah, tell that to Blackberry, they waited 3 years, look at them now.

If you were running Samsung, the company wouldn't last a month.

posted on 06 Sep 2013, 03:26 3

24. LetsBeHonest (Posts: 982; Member since: 04 Jun 2013)


No offense that's seems a bad idea.
imagine you buy a flagship then after one or two or three month later the same company release a new flagship or release a upgrade version of the same... It'll definitely make you feel betrayed and make you feel your current phone outdated.

posted on 06 Sep 2013, 02:18

20. itsdeepak4u2000 (Posts: 2814; Member since: 03 Nov 2012)


Change those boring designs and use some Carbon fiber or Kevlar bodies... Then people will come to you again...

posted on 06 Sep 2013, 02:20 4

21. android_hitman (Posts: 653; Member since: 07 Jul 2010)


I think the whole planet went mad with this fu*king growth thing!! They want to sell more and more and more but the retarded investors and CEO's are not considering that less and less people can afford high end phones and a lot of people are getting fired (by them).
...

posted on 06 Sep 2013, 02:59 2

23. Bozzor (Posts: 144; Member since: 02 May 2012)


If you're after a top range handset, this is what your choices will be shortly...

iOS
iPhone 5S

Windows Phone 8
Nokia 925/928/1020
Nokia Phablet 1520?

Android
Sony Z1 / Ultra / Honami
LG G2 / G Pro / Nexus 5 (?)
Samsung Galaxy S4 / Note 3
Alcatel One Touch Hero / Idol X
HTC One / Butterfly S / One Max Phablet (?)
Huawei Ascend D2
Lenovo Vibe X

...guess what? That's not even half of what will be available when you count Meizu, Xiamo, Pantech, ZTE and other smaller players who can produce top handsets thanks to the modular nature of so many components.

It's going to be very hard for the smaller players to make money from Android...but these smaller players will definitely hit the larger guys, especially Samsung, who will also need to contend with Sony and LG.

I saw this happen before...in the digital camera and flatscreen TV markets. The initial players make a killing, everyone smells money, then everyone gets in...and you can work out the rest...

posted on 06 Sep 2013, 16:10

46. Suo.Eno (Posts: 204; Member since: 17 Feb 2013)


"It's going to be very hard for the smaller players to make money from Android...but these smaller players will definitely hit the larger guys, especially Samsung, who will also need to contend with Sony and LG."

It's only hard because literally 90% of 'em are doing it ass backwards wrong by ways of:-

1. lacking international markets exposure or slow introduction.

2. questionable AOSP compliance.

3. even more questionable in-house firmware/software quality/time of delivery guarantee. Not even the gorilla in the room Samsung can put out updates on time let alone these small Android OEMs? That's the perception and often it's the actual case.

All 3 requires both aggression and finesse. They can't just do specs and prices it's about balance.

posted on 06 Sep 2013, 03:39 7

25. Tsepz_GP (Posts: 843; Member since: 12 Apr 2012)


The only Android maker that can get close to Samsung is LG, NOT because of the Nexus, that has to be THEE most PATHETIC excuse Sony fans keep coming up with, Nexus phones don't sell much, they are niche devices and are not available globally.

Anyway.

This is mainly due to analysts who had unrealistic expectations, now that those unrealistic expectations arent being met, share prices are being cut, same is happening to Apple. Galaxy S4 remains the best selling Android around and even Samsung have a positive Q3 outlook. :)

posted on 06 Sep 2013, 06:03

27. biggles (Posts: 213; Member since: 15 Oct 2009)


With the current crop of phones coming out, the solution is simple. They need to do a mid-cycle refresh of bumping up to the Snapdragon 800 and adding LTE-A support in markets where that model isn't available (like Deutsche Telekcom is doing). Then, the S4 with its removable battery and sd card option becomes an attractive alternative to the Z1 and G2, all else equal. As a Verizon customer, I really want to like the S4, but at this point, the G2 seems like a better buy.

posted on 06 Sep 2013, 06:20

28. youdug (Posts: 27; Member since: 19 Jul 2013)


Xiaomi.

posted on 06 Sep 2013, 07:03 1

29. pyradark (Posts: 781; Member since: 10 Jun 2012)


Its easy for sammy to sell 100M, but S4 dissapoibt due to no WoW points!!! Better luck next year.

posted on 06 Sep 2013, 07:24 2

31. dmsrfl (Posts: 32; Member since: 21 Sep 2012)


as a Galaxy SII owner for the past 2 years, I just gotta say that Samsung hasn't released any phones that have made me want to upgrade. They all look the same and cheap. Touchwiz is boring and I'm just waiting for a pure Android phone with great specs to come out so I can finally upgrade.

posted on 06 Sep 2013, 13:12

43. volcano321 (Posts: 20; Member since: 08 Aug 2013)


The nexus 4 when it came out didn't have great specs?

posted on 06 Sep 2013, 07:51 2

35. Jason2k13 (Posts: 657; Member since: 28 Mar 2013)


So samsung is losing market share but still selling more phones than sony, lg and htc combined.

posted on 06 Sep 2013, 08:55 1

36. verbalize (Posts: 92; Member since: 03 May 2013)


Lol... Wow! 13% drop in sales. And that's with the flag ship phone the supposedly incredible Samsung Galaxy S4. Bye-bye Sammy.

posted on 06 Sep 2013, 09:16 1

37. jellmoo (Posts: 700; Member since: 31 Oct 2011)


Just to be clear, it isn't a 13% drop in sales, it's a 13% drop in profits. They are very different things. A lot of contributing factors (such as wage increases, manufacturing cost increases, marketing cost increases, etc...) can contribute to this.

Not that I'm defending Samsung here, their products aren't my cup of tea. But the situation isn't anywhere near as dire as the source article seems to indicate.

posted on 06 Sep 2013, 11:00

41. taz89 (Posts: 2014; Member since: 03 May 2011)


Someone who actually read the article properly and sees this isn't anywhere as bad as its being articulated to be.

posted on 06 Sep 2013, 09:34

38. jamesedward318 (Posts: 99; Member since: 25 Dec 2010)


The S4 is to the S3 what the 4S was to the 4. There was not many huge differences between the devices just "upgrades". Smartphone makers need to build phones as if the future of the respected company hangs in the balance. Giving us all a pretty camera, larger screen, faster processor and different color ways isn't quite enough. Phones are going to need better and different housing to reel in customers from their current devices. Just off the leaks alone I am sticking with my iPhone5 and not the newest 5S or 5C. Do better and sell more.

posted on 06 Sep 2013, 10:35 2

40. intos (Posts: 87; Member since: 06 Jan 2012)


hey sammy fix the f...ing lag to your divices even the galaxy 4 lags like hell, and make them more smooth and simple ! that is the key for a succesfull phone ,and that is the main issue !

posted on 07 Sep 2013, 05:22

50. Trex95 (Posts: 571; Member since: 03 Mar 2013)


I agree with you. That's why IPhone still the leader even though with low feature but easy to use.

posted on 06 Sep 2013, 11:03 1

42. bigstrudel (Posts: 518; Member since: 20 Aug 2012)


I think it's just overall satisfaction is higher and there's just not alot of incentive to upgrade when what you have works well already.

posted on 06 Sep 2013, 13:47

45. vzwincred (Posts: 29; Member since: 15 Nov 2011)


locked bootloaders don't help. just saying

posted on 07 Sep 2013, 06:48

52. Sondae (Posts: 193; Member since: 02 Jan 2013)


The problem of Samsung they keep making phone that over shadow what is there main product the s4. Then there are new alternative againts s4 more powerful and fast now a days.

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