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Analyst sees slowing smartphone sales leading to lower fourth quarter earnings for Samsung

Posted: , by Alan F.

Analyst sees slowing smartphone sales leading to lower fourth quarter earnings for Samsung
Analyst Hyunwoo Doh from Jefferies has cut his operating earnings estimate for Samsung's fourth quarter, partly due to slowing smartphone sales. Doh sees slower growth in high-end smartphone demand and "inventory destocking". Other road blocks include a lower dollar versus the Korean Won, which means that each dollar that Samsung receives from the states is converted into fewer Won than last year.

Higher bonus payouts are also expected to put a dent in operating earnings for the three months. The company needed to spend 400 billion Korean Won ($380 million) to pay some workers a bonus for the 20th anniversary of Samsung's "new management initiative." Doh has cut his own estimate for Q4 operating earnings from 9.9 trillion Korean Won ($9.4 billion USD) to 9.3 trillion Korean Won ($8.82 billion USD).

The analyst expects things to turn around after the first quarter and the Korean based OEM does have some big products on the horizon, including the eagerly anticipated Samsung Galaxy S5. The newest Android flagship is expected to carry a larger 5.25 inch QHD AMOLED screen as Samsung tries to shake things up to reinvigorate its high-end line. Sales of the Galaxy S4 slowed down sharply after a terrific start. Samsung is also expected to reveal a sequel to the Samsung Galaxy Gear smartwatch at CES next week, along with some new Exynos chips.

"The semiconductor division should see an improvement in earnings, backed by the DRAM market upswing, while the CE division should also post strong earnings growth on seasonally strong demand. However, the IM division should see a decrease in earnings, due to slower high-end smartphone sales and inventory destocking, while the DP division should also post poor earnings, due to ASP drop and lower AMOLED capacity utilization."-Hyunwoo Doh, analyst, Samsung

source: Barron's via BGR

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posted on 04 Jan 2014, 11:11 1

1. nctx77 (Posts: 536; Member since: 03 Sep 2013)


It's over Sammy! The next HTC is here! Lol!

posted on 04 Jan 2014, 11:34 4

4. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


Get rid off those cheap plastic Samsung: users are fed up with your lowbudget materials.

Where is the oldskool Samsung, that use to use metal on there phone devices....?

It's time to give us consumers what we pay for your highend products.

We don't like plastic!

posted on 04 Jan 2014, 12:32 12

10. g2a5b0e (Posts: 2392; Member since: 08 Jun 2012)


"Get rid off those cheap plastic Samsung: users are fed up with your lowbudget materials."

Ooooooh, I see. That's why Samsung has sold way more phones over the last 2 years than other OEMs...because people are fed up with them. Makes perfect sense. /s

posted on 04 Jan 2014, 13:48 5

14. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


flooding the market with "plastic" phones doesn't translate to plastic = good, there's that part of the market that's okay with plastic and obviously another part that chooses premium build quality over plastic, sheesh, I thought you were smart enough to figure that out

posted on 04 Jan 2014, 14:07 14

16. Shatter (Posts: 2030; Member since: 29 May 2013)


I could care less what material its made of, its just a phone.

Most metal phones use cheap aluminum that is just as bad/cheap as plastic if not worse. It scratches, dents easily, weighs more, conducts electricity, holds heat in.

Not all metal phones are bad some like Lenovos K900 are very durable and very well made. Instead of cheap aluminum the K900 is made of stainless steel.

The best material for metal phones is magnesium alloy, its extremely durable and relatively cheap.

posted on 04 Jan 2014, 14:46

20. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


+1 for the K900. I did mention that phone aswell as the SonyZ and Lumia928

A phone with weight, and prestige used material looks "pukka" and "turns head" than cheap plastic. "HtcOne" is superb build.

Though i own a S4 Korean S800 version and a Galaxy Note3 Exynos A15 version. It still feels cheap, with a highend handset, "flagship"

posted on 04 Jan 2014, 14:46

21. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


+1 for the K900. I did mention that phone aswell as the SonyZ and Lumia928

A phone with weight, and prestige used material looks "pukka" and "turns head" than cheap plastic. "HtcOne" is superb build.

Though i own a S4 Korean S800 version and a Galaxy Note3 Exynos A15 version. It still feels cheap, with a highend handset, "flagship"

posted on 04 Jan 2014, 14:46

22. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


+1 for the K900. I did mention that phone aswell as the SonyZ and Lumia928

A phone with weight, and prestige used material looks "pukka" and "turns head" than cheap plastic. "HtcOne" is superb build.

Though i own a S4 Korean S800 version and a Galaxy Note3 Exynos A15 version. It still feels cheap, with a highend handset, "flagship"

posted on 04 Jan 2014, 14:47

23. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


Plastic feels cheapand tacky. It all comes down to how you want your device to feel since you're going to put a case anyway. btw Apple found a way to go around the whole "metal is heavy" idea you can look up Liquid Metal is

posted on 04 Jan 2014, 23:13 1

52. Arman (Posts: 42; Member since: 08 Jul 2013)


"Most metal phones use cheap aluminum that is just as bad/cheap as plastic if not worse. It scratches, dents easily, weighs more, conducts electricity, holds heat in."

dude do you even know what aluminum is?.. holds heat in !!!! metal body translate to better heat transfer .. weighs more?? so why ipad air structure(same screen AREA) with bigger battery and smaller volume has less weigh than note 10.1 (almost 200 grams!!!) .. ?? cheaper than plastic ??? you don't have a clue.. aluminum isn't cheaper and most of all producing an aluminum structure needs more time and cost.(so much more some times 10 times a plastic structure)

wanting a premium feel is your right as a customer, if you think plastic is enough for you don't bother, just buy a low quality high spec phone and enjoy your ghz and Mega bytes.. some people want to enjoy premium body and just enough amount of ghz & mega bytes..

posted on 04 Jan 2014, 23:53 1

53. willard12 (Posts: 827; Member since: 04 Jul 2012)


I'm not sure where you are getting your numbers. But aluminum goes for 40 cents per pound. I'm not sure if you think that is premium or if a can of Coca Cola is premium. If so, I guess that's what the Galaxy F is for.

posted on 04 Jan 2014, 14:34 8

18. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


So please explain to me why Samsung continues to outsell it's predecessor every year with the Galaxy S series?

posted on 04 Jan 2014, 14:51

24. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


The original Galaxy advertised it as having the best specs, same as S2, S3 and even S4. Sseries is pushing sale cause of it's specs.

Apple iPhones sales due to being to able pose, showoff, i'm cool, the trend.

posted on 04 Jan 2014, 15:01 1

25. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


Smurf, did you really have to ask? Samsung devices with the S branding have always been made of plastic, nothing has changed on that regard. What has changed? Perfomance, display, features and gimmicks with loads of marketing...NOT the plastic.

posted on 04 Jan 2014, 16:30 7

31. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


"It all comes down to how you want your device to feel since you're going to put a case anyway."

Thanks for proving my point with your other comment. You clearly can't accept that fact that majority of the people in the world do not care about plastic or not. Guess what? You use plastic everyday. Do you really think that having a phone made of glass or aluminum makes you feel like you're above others? Samsung clearly knows what they're doing. Sales figures and devices sold each quarter prove your comment invalid.

Thanks for trying to prove me wrong, again, but you have failed - again.

posted on 04 Jan 2014, 17:31

40. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


Oh God no, not this sh*? again. " Thanks for trying to prove ME wrong". ITS NOT ABOUT YOU, if someone prefers a metal Samsung device then should he keep it to himself because Smurf is going to shoot him down, by mentioning Samsung selling smartphones by the millions? that's his choice stop trying to make everything about YOU.

posted on 04 Jan 2014, 15:26 4

28. g2a5b0e (Posts: 2392; Member since: 08 Jun 2012)


Thanks for enlightening me, kid. Don't know what I'd do without you. Now go back to your Saturday afternoon cartoons.

posted on 04 Jan 2014, 15:43 2

29. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


its always a pleasure to give education for free even when one chooses to be brash or insulting, it must be embarrassing to be old and ignorant, I'm hanging to out with my gf today so the cartoons are all yours

posted on 04 Jan 2014, 16:34 7

32. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


It's funny you mentioned him being ignorant, considering your ignorance goes full throttle in a lot of your comments. You're trying to act smart and pretend like you know what you're talking about, so I have zero sympathy for you. You got put in your place, now stop before you embarrass yourself even more. If you can't handle the heat, then get out of the kitchen, kid.

posted on 04 Jan 2014, 17:11 2

33. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


" You're trying to act smart and pretend like you know what you're talking about, so
I have zero sympathy for you." First you've been saying this over and over and again seriously its getting old. I remember your words that went by "I got so many people banned on this site", if this is your way of doing it then you've got to look for a new strategy cuz this trooper is here to stay. I'm different from anyone you've ever met and I'm here because people are not going to remain biased towards your BS, you don't like it? too bad

posted on 04 Jan 2014, 17:21 5

36. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


Is the little kid mad? I'm here to talk about technology. When you're ready, let me know. I don't want to hear you whine about your problems. Thanks kiddo.

posted on 04 Jan 2014, 17:34

41. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


oh the irony, PAPA SMURF

posted on 04 Jan 2014, 19:48 3

48. joey_sfb (Posts: 3006; Member since: 29 Mar 2012)


I have 3 different type of casing for my note 2 and 3 different types of casing for note 3, for each i would buy them a stainless steel case.

Putting metal case over plastic for Samsung device give me a peace of mind compare to my iPad which I do get little electric shock from the all aluminum case so only plastic book case for them. The electric shock can be quite dreadful when the thing is charging.

posted on 04 Jan 2014, 17:30 2

39. g2a5b0e (Posts: 2392; Member since: 08 Jun 2012)


He's saying it over & over again because it's true. It's obvious from your comments that you're a young kid who truly doesn't know a ton about tech. You call me ignorant, but your ignorance shines through with every post you make. The sandbox is waiting. The big kids will still be here when you get back.

posted on 04 Jan 2014, 17:43

42. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


I may not know much about Android but clearly you have no idea how I met Smurf. He was and still is the college kid. Besides this site doesn't go beyond mobile tech so I pretty much visit sites like The Verge and TechCrunch, and thank goodness I don't find people like some *ahem* of the guys here. The Saturday afternoon cartoons are waiting remember

posted on 04 Jan 2014, 18:48 4

47. g2a5b0e (Posts: 2392; Member since: 08 Jun 2012)


I don't care about how you met Smurf. That has no bearing on anything being discussed here. I don't even care that Smurf is a college kid. It's not so much about age as it is about maturity & intelligence. The difference between you & him is that you possess neither. I generally don't take to the boards to bash people & there are folks a lot worse than you on here, but you're the one who decided to rub me the wrong way, so you got it. That's as far as I'll go on the subject. Stay out of my way & I'll stay out of yours.

posted on 05 Jan 2014, 02:40

55. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


Apple's YEILD problems are also getting old ... and sickening as it can only convince the iGnorants.

posted on 04 Jan 2014, 17:17

34. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


You know what college kid, I encourage you to keep trying maybe you'll get to me...one day. Good luck on that one

posted on 04 Jan 2014, 17:24 3

38. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


Glad to hear my words affect you that much. Thanks for taking the time to click on my username, read my bio, and respond to me. Yeah, I sure didn't get to you alright.

Want to talk about technology now, which is what the article is about, or should I refer you to a counselor?

posted on 04 Jan 2014, 17:50

43. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


"Glad to hear my words affect you that much." wait, I'm the one living in your head all this time since idk last year summer, fall? Guess what, it was rent-free. Getting back at technology what where you talking about btw?

posted on 04 Jan 2014, 18:02 1

44. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


Maybe I remind your of your past? if you were bullied or something please let me know, I know how it feels like when you find a place where you can get greenies to make you feel like you're loved and all of a sudden someone comes by and reminds you of the dark days I really do. Anyway its healthy to talk about tech with all that behind us

posted on 05 Jan 2014, 06:06

57. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


You're either too dumb or just love looking for trouble.

Please stop responding to me if you're not going to talk about a the article. Thanks.

posted on 04 Jan 2014, 13:49

15. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


flooding the market with "plastic" phones doesn't translate to plastic = good, there's that part of the market that's okay with plastic and obviously another part that chooses premium build quality over plastic, sheesh, I thought you were smart enough to figure that out

posted on 04 Jan 2014, 11:42 1

6. akki20892 (Posts: 3566; Member since: 04 Feb 2013)


HTC : don't make fun of me.

posted on 04 Jan 2014, 22:43

51. phljcnth (Posts: 269; Member since: 30 Apr 2012)


No, not happening. Samsung has bunch of new things to offer like the Design 3.0, 64-bit chips with monster RAM, 2k display, flexible display, Isocell camera, wearable techs, new tablet and low-end phones, and lot more. All these will raise the bar even higher. While HTC is too dead now.

posted on 04 Jan 2014, 11:17 8

2. kabhijeet.16 (Posts: 653; Member since: 05 Dec 2012)


Analysts are never right. They predicted loss for Samsung. But Samsung got huge profits.
They predicted iPhone5S wud be failure, but it sold in huge numbers.
They predicted that HTC One would juz kill other devices (seeing the build quality only), instead it killed HTC and HTC posted huge losses...
So, everyone needs to relax about analysts...

posted on 04 Jan 2014, 11:18 1

3. karimhasebou (Posts: 11; Member since: 30 Apr 2013)


@nctx77 Its not about samsung. Its just like pc sales which have very little growth

posted on 04 Jan 2014, 11:43 1

7. nctx77 (Posts: 536; Member since: 03 Sep 2013)


This article is about Samsung. The S3 and note 2 were more popular around this time. With keeping a similar design, cheap materials for 2013, Sammy is feeling it. They had all the momentum leading into 2013 and a "S" model year from Apple and they blew it. Whatever they do with the S5 should have came out in 2013. Now it will be going against the iPhone 6 and new product categories from Apple that will be stealing the media thunder. Don't think that Sammy will have the entire 3/4 of the year to themselves like they did last year.

posted on 04 Jan 2014, 13:37 2

13. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


the media will be all over Apple's bi-annual iphone design revamp especially when the rumor mill hints on a large display iphone

posted on 04 Jan 2014, 11:40 10

5. _Bone_ (Posts: 2135; Member since: 29 Oct 2012)


This is of course Samsung sponsored news, the company is about to buy back a major portion of it's own stock and tries to push value as low as possible before they eventually announce the latest record profits, which based on S4, Note3 and Gear sales - alongside with the hundreds of other products - is coming.

The reason for this is the same as Apple's case last year. A mega-company sitting on a lot of cache without the urge of burning it but on the verge of a new technological paradigm (bendables and wearables) decides to spend the money to gain more control over the shareholders' board and have less pressure for the upcoming unpredictable years.

Since the Koreans are the king of this new technology, but it not yet attracted investors as it will shortly, this is the perfect time to move.

posted on 04 Jan 2014, 11:45 1

8. Sauce (unregistered)


Very interesting post. +1

posted on 04 Jan 2014, 11:52 1

9. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


They should buyout shareholders, and become private! Why rely on shareholders, when they have billions in funds, "offshore"
+1 great post

posted on 04 Jan 2014, 13:24 1

11. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


I said it once I'm going to say it again, the smartphone market has matured I could also go as far as saying it has stalled. The way I see it, it's going to be about spec bumps and variations. Bendable screens wrap around displays are just going to be there for the sake of change

posted on 04 Jan 2014, 14:36 4

19. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


Keep thinking that. Let's not forget that spec bumps got OEMs to where they are now. Did we think about that?

posted on 04 Jan 2014, 15:15 1

26. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


did you"we" also think about the innovations that got OEMs to where they are now like s-pen, voice assistants, fingerprint scanners that took a new turn? no? you sure?

posted on 04 Jan 2014, 17:19 4

35. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


So you rehashed my comment. Aren't you smart? Notice how you mentioned S-Pen, which was by Samsung, the company you hate solely because they make phones out of plastic.

posted on 04 Jan 2014, 18:30

45. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


I have nothing against Samsung but as someone who owns an iphone I enjoy poking fun at Samsung in some of my posts, and most of them are good natured. I realised that it doesn't go down very well with a lot of Sammy fanboys around here (remember the 16gp camera one on the gs5 post when you totally spazzed?)

posted on 05 Jan 2014, 06:02

56. PapaSmurf (Posts: 8713; Member since: 14 May 2012)


So by your logic, it's okay to talk about Samsung and "poke fun," but when you get called out on, you want to have a fit? Also, if you don't know much about Android, then why the hell do you talk about it and pretend like you do? Like I told xperiaDROID, don't post bait comments. Simple as that. Think twice about what you post and you wouldn't have people making you look stupid.

Life lesson #1.

posted on 04 Jan 2014, 18:35

46. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


I mentioned features that turned out to be innovations, not spec bumps. The heck, how ramping up megapixels in a camera going to blow any competition out of the water when the competitors will easily do the exact same thing in this day and age?

posted on 04 Jan 2014, 15:19

27. androiphone20 (Posts: 1474; Member since: 10 Jul 2013)


*yawns* it's getting old do "we" have something "interesting" to talk about?

posted on 04 Jan 2014, 20:13 5

49. joey_sfb (Posts: 3006; Member since: 29 Mar 2012)


You are limited to iOS. I like new gadget in general. I love the iPad when it first came up shown it to everyone.

Now they are just boring device. The UI is stale. Productivity apps data is confine to their respective apps and i will never make a mistake of using them.

One thing iPad do beat Android tablet now is games. They do have some exclusive titles but that margins is narrowing.

Please don't insult Android users and Samsung and i won't do it on iOS. Mutual respect.

posted on 04 Jan 2014, 13:32

12. vikingsfootball09 (Posts: 59; Member since: 02 Oct 2013)


if anything, it has to do more with samsung over saturating the market and themselve with all their variants...like over a dozen new smartphones a year...vs a few for other android oems, to what was one a year for apple (now putting out two new smartphones a year)...

posted on 04 Jan 2014, 14:22

17. Loubielou (Posts: 226; Member since: 11 Jul 2012)


How can they predict this when Samsung are just going to Release the Galaxy S5 an Galaxy F

posted on 04 Jan 2014, 15:50

30. kryme (Posts: 142; Member since: 24 Oct 2013)


*shake my head* here is a company thats about to release a phone that will be the best selling phone of the year beating the sales of the s4.. and they r saying that this company is having sales problem... only samsung can mess up their sales as far as i see s5 is the phone that will make or break the company

posted on 04 Jan 2014, 17:22

37. Kishin (Posts: 620; Member since: 30 May 2013)


Its their downfall due to releasing 50 devises+ a year and its not the first time this happened. If they could release 2 devices a year it would make a difference.

posted on 04 Jan 2014, 21:25

50. zachattack (Posts: 580; Member since: 31 Jul 2013)


They figured throwing all their money into marketing would defeat all the other phone companies. Now they have no money, kind of hilarious. I don't know how on earth they even got so popular by beeing so boring. They are the apple of the android world

posted on 05 Jan 2014, 01:47 2

54. g2a5b0e (Posts: 2392; Member since: 08 Jun 2012)


You just said Samsung has no money. Seriously? Is that what you got out of this article? Slap yourself. You can't possibly be this stupid.

posted on 05 Jan 2014, 08:23

58. twens (Posts: 674; Member since: 25 Feb 2012)


He is more than the word stupid itself.lol

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