Samsung reports lower quarterly earnings for the first time in two years
Operating profit for Samsung's gilded-edge mobile division was flat at 5.47 trillion won ($5.08 billion USD), from a year earlier. On a sequential basis, the figures were off 18% from the record 6.47 trillion won ($6 billion USD) operating profit seen in the previous quarter. Analysts blamed strong sales of the Apple iPhone for Samsung's decline in mobile operating profits during the fourth quarter.
With displays earmarked for the Samsung Galaxy S4 sitting in the warehouse collecting dust, Samsung Display saw operating profit decline 90% to 110 billion won ($100 million USD). Samsung's flagship Android phone sold fewer units than estimated, resulting in a number of screens sitting by idly.
1. nokia12 (Posts: 452; Member since: 19 Nov 2013)
time for Sony and LG to rise... waiting for great results from Sony due to z1 and z ultra sales...
2. nokia12 (Posts: 452; Member since: 19 Nov 2013)
also add xperia m which became second best seller after lumia 520 in low end
5. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Both models leave 0 room for profit, which in the end is the ultimate goal of a company.
15. nokia12 (Posts: 452; Member since: 19 Nov 2013)
I wasn't talking about profitability when talking about xperia m .. I was talking about units sales ... z1 and z ultra will push profitability.. xperia m is a 210$ device not exactly 0 margin profit device even moto g makes some profit this is lowered speced than moto g so it should be making even more profit. although a small one., high volume might cover it up.. Sony has other departments especially tv and camera business which are struggling that will have a major impact in their profitability. ps4 sold big numbers so game sales of ps4 should push gaming profitability even higher this quarter...
41. SandraB (banned) (Posts: 75; Member since: 07 Aug 2013)
Samsung must pay licenses to microsoft for Android
Nokia Microsoft will now avoid paying licenses for Android. Then microsoft take out licenses for this Linux variant.
Really wonder if China and India, with nice big manufacturers like Huawee and Micromax will allow the deal between Microsoft and Nokia.
Will India and China regerinar really allow the store when the risk to knock out their entire phone industry?
It's not fair if microsoft nokia avoid paying licenses
7. Isitforyou (banned) (Posts: 11; Member since: 19 Jan 2014)
Sony, LG, HTC, Oppo, should do well this year.
Enough of Samsungs cheap plastic. But specs are great by Samsung, which they believe in.
18. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Same has been said since 2011.. Sounds like a broken record.
27. androiphone20 (Posts: 1654; Member since: 10 Jul 2013)
True, only this time around OEMs like oppo are making good smartphones like the Find 7, LG and Sony are really stepping up their game so the S5 is up for some steeper competition. In the low-end department a lot of OEMs are rising too, Motorola is doing well and people who care less about a $700 smartphone are going for devices like the nexus line
29. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Only OEM I see next year climbing is either Sony or LG. Everyone else is going to stay where they're at. Moto is looking good btw.
42. Tsepz_GP (Posts: 917; Member since: 12 Apr 2012)
Don't get your hopes up :D Sony Z Ultra was barely a hit, and the Z1 hasn't seen the sort of success the Z did, Sony would have told us if it did. Expect Sony to make a profit in gaming and financial activities.
Us logic, if Samsung were hit by higher iPhone sakes then that causes a ripple effect, the rest of the Android OEMs probably also had a rough quarter.
3. PBXtech (Posts: 1029; Member since: 21 Oct 2013)
Still a considerable amount of profit. If the S5 is as good as expected, should be a good year for them in 2014.
6. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Hopefully it's LTE-A capable so when T-Mobile upgrades their LTE network this year, it'll be ready.
11. Bernoulli (Posts: 2421; Member since: 01 Sep 2012)
man don't even start with t-mobile's LTE-A myth, I too am a t-mobile customer/employee but right now there won't be any plans for LTE, too many people are still on 2G/edge, if anything refarming that pcs 1900mhz band to hspa+ same frequency then we'd be talking, but no LTE-A in sight.
19. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Whoever trained you at T-Mobile did a poor job because you obviously don't know what you're talking about, which is typical. T-Mobile is rolling out VoLTE to get rid of 2G across the nation and covert it to HSPA+ and LTE/LTE-A. Think I'm wrong? Tmonews posted articles not so long ago with an interview with John Legere.
37. hurrycanger (Posts: 1505; Member since: 01 Dec 2013)
Ditch all 2G to make way for national HSPA+ and LTE? That sounds totally sweet!
12. g2a5b0e (Posts: 3430; Member since: 08 Jun 2012)
Of course it will be. The Note 3 is LTE-A capable. Almost positive the G2 is as well.
21. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Is it really? I thought it wasn't. John Legere spoke about the carrier hitting max data speeds of over
150mbps, so LTE-A this year is going to kick ass.
26. g2a5b0e (Posts: 3430; Member since: 08 Jun 2012)
It is. Samsung has been including it in all of their Snap 800 devices since the LTE-A S4 came out in S. Korea last June. It will kick ass. I can't wait.
32. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
This news is better than the news I got from my professor in passing my exam with a 100 lol.
Good guy Samsung for making their phones futureproof.
31. g2a5b0e (Posts: 3430; Member since: 08 Jun 2012)
Did a little research. The G2 does support it. The Nexus 5 & 7 are the only other devices on T-Mobile that currently do as well.
33. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Nexus 7? S4 Pro has LTE-A capabilties? Is it modified since other phones don't support it?
34. g2a5b0e (Posts: 3430; Member since: 08 Jun 2012)
Sorry, I was confusing LTE-A & Category 4 LTE devices, which are ones that support 20+20 LTE (wide band). The Note 3 & G2 are both, while the Nexus 7 is only the latter. I'm not sure if the Nexus 5 is LTE-A capable, but it's definitely Category 4.
35. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
I know all flagships in 2014 are going to be wideband capable (S5, Z1S). With T-Mobile pushing VoLTE aggressively to eliminate 2G from the nation, speeds are only going to get better and better. Thanks to the 700MHz Block A spectrum purchased from Verizon, T-Mobile will remain the fastest LTE network in 2014.
36. g2a5b0e (Posts: 3430; Member since: 08 Jun 2012)
No doubt about it. That gap will only widen too. I've been a T-Mobile customer for over 10 years now. They've never given me a reason to leave, but recently, they've been giving me lots of reasons to stay. I love it.
8. nctx77 (Posts: 1058; Member since: 03 Sep 2013)
The S5 will have some serious competition this year from both other Android hand sets and Apple. HTC, Sony and LG are not playing. Added in Lenovo and other Android manufactures making noise, Samsung is finding it increasingly hard to keep it number one status and differentiate it self. Add in an early release of a large screen iphone and a phablet later in the year and you will continue to see articles like this. Everybody will have big screens, 2k res, fast processors, etc.
10. Napalm_3nema (Posts: 1675; Member since: 14 Jun 2013)
No, not really. Are they stumbling? A bit. Are they hurting? Not by a long shot, when they collected around 53% of all mobile profit. That means Sony, Google, LG, Motorola, HTC, etc. collected -9% of all mobile profit (Yes, collectively, they lost money, although Sony and LG saw small profits individually), since Apple collected the other 56%.
13. nctx77 (Posts: 1058; Member since: 03 Sep 2013)
Those are hard numbers. I'm looking at momentum. HTC One didn't sell no where near as much as the S4, but what it did do is create a buzz much like the Initial Galaxies did. Now, people are intrigued and waiting on the second edition. The same can be said for other manufactures. Sammy hasn't dealt with that in a while. Before, it was just a bunch of phones with not one really standing out. HTC, Sony, LG, etc have really created some nice momentum in 2013. Most in the Android camp have been rocking Galaxies for a while now. They want something different. It's the same thing Apple went through.
16. taz89 (Posts: 2014; Member since: 03 May 2011)
Don't think HTC created much buzz, imo out of all the oems I think Sony and LG have the best chance and HTC just can't gather steam and they just are not making enough money to keep up the marketing and hence create and maintain buzz. The problem here for people predicting Samsung demise is that Samsung just make too much money and even there worst quarter is like better than others best better quarters.. It all comes down to money, Samsung make profits in billions, the others are making millions when they make a profit. For anyone to suddenly over take samsung it would mean samsung will have to be losing tens of millions of sales a quarter with at the same time others increased tens of millions each quarter. If we looking at the US the likes of HTC, moto etc lost market share while Samsung increased. My point is that not that Samsung will never go down but this 1 drop I sales in 2 years is not a sign of demise. Samsung need to be losing in every quarter this year to be considered a demise. Also 750million was used up for bonus Payment so that's a huge chunk, that's more than HTC, Sony, LG, moto made this year in profit so I think anyone (not you) saying this is the death of Samsung are being very sort sighted
49. PBXtech (Posts: 1029; Member since: 21 Oct 2013)
Samsung makes the internal components others need. When the rest can do that, they'll be as strong as Samsung. Until then, they're buyers of those components, advantage Samsung.
9. Furbal (Posts: 587; Member since: 22 Sep 2012)
I'd say, exchange rates not in their favor and a huge employee bonus. Impressive by any means
I probably wont be buying a Samsung phone this year though, not liking the direction they are heading as noted in the kitkat update breaking accessories article...
43. Tsepz_GP (Posts: 917; Member since: 12 Apr 2012)
Exactly, better profit than any other Android OEM will make in the next year, a bad quarter for Samsung still yields a huge profit, $5.08billion in the mobile division alone.
38. hurrycanger (Posts: 1505; Member since: 01 Dec 2013)
One 2 cha cha cha. That's a very fun dance.
17. fanboy1974 (Posts: 1344; Member since: 12 Nov 2011)
This is good news. When you see just average iPhone updates with people still buying them it gives Apple no motivation to improve. This should force Samsung to react and make better phones. Just look at the HTC One and LG 2; clear improvements over the previous models. And if it wasn't for Android Apple would still try to push a 4" screen down our throats.
24. androiphone20 (Posts: 1654; Member since: 10 Jul 2013)
"it gives Apple no motivation to improve." what? you're kidding right, how is that even possible?
20. taz89 (Posts: 2014; Member since: 03 May 2011)
This is the end of Samsung I tell you, I bad quarter on 2 years is just not acceptable. Kidding a size if samsung profits keep on dropping for the next 3 quarters I'll be on the Samsung is dying bandwagon lol
25. Napalm_3nema (Posts: 1675; Member since: 14 Jun 2013)
Yeah, once is a hiccup, twice is a bump, but three in a row could see a quick spiral begin. Until then, this is a minor, isolated incident. Still, doubt Sammy sees any money out of me this year. Love my Z1S, and I hope the follow up is another step in the right direction.
30. taz89 (Posts: 2014; Member since: 03 May 2011)
Exactly, basically this year we will know if samsung is just gonna stay on the top for a while longer or will it mean the slow demise. That's the other thing, even if it is a demise it will be a while before it loses its top position as it's so far ahead right now giving it time to amend itself too which the others don't have the luxury of. Sony make some nice looking phones, just not a fan of the bezels on there phone or the update speed. Let's see what the z2 brings. One thing for sure sony is on the right track and can't rule them out as the oems for my next phone. Cause honestly Sony and Samsung are the only ones using sd card slot and any phone that hasn't got one is a no for me.
39. janjhel1907 (Posts: 12; Member since: 21 Jun 2013)
its not because of apple sales, its because of SAMSUNG'S DESIGN and build of smartphones add the pricing .. poor design and build, also expensive than other smartphones
44. Tsepz_GP (Posts: 917; Member since: 12 Apr 2012)
Haha, $5.08billion in the mobile division alone, that is more than some entire conglomerates make, the rest of Samsung's Android rivals wish they made a profit full stop. I trust Samsung hasn't their lesson though, I like the fact that they made a lower profit, means they will work much harder on the Galaxy S5 :)
45. xfire99 (Posts: 634; Member since: 14 Mar 2012)
Too many different versions of same model and too confusing to what to buy = lesser sales.
47. PapaSmurf (Posts: 9848; Member since: 14 May 2012)
Wasn't the case in 2012, 2011, 2010....
52. xfire99 (Posts: 634; Member since: 14 Mar 2012)
Look back to 2010-2012 and compare it with 2013 and how many models they released. Then different versions of same model. Both for smartphones and tablets.
2012 they had 4 different versions of Top model of Galaxy S3 here in EU and not talking about when S4 released in 2013.
Exynos, Qualcomm 600, Qualcomm 800 (S4 Plus), Qualcomm S4 (S4 mini)
Also Galaxy S4 Zoom, S4 Active.
Even I like Sammy products and I dont even ´have a clue what theh heck all these S4 devices are for.
48. geodude074 (Posts: 74; Member since: 05 Mar 2013)
Some of these comments are ridiculous.
Samsung reported PROFITS of $7.7 BILLION USD for the FIRST QUARTER and some of you are claiming that it's the beginning of the end for Samsung? HAH!
51. kryme (Posts: 261; Member since: 24 Oct 2013)
its not the end of them... but now is not the time to be losing... apple was warming up with the 4 4s 5 5s..... the 6 with that 4.8 screen will have alot of person switching... cause android phone getting too big and apple phones getting in that sweet spot screen size... i'm a samsung fan but before i go get the s5 am gonna wait to see wat the iphone 6 looks like....
50. kryme (Posts: 261; Member since: 24 Oct 2013)
as i said before....the s5 will make or break samsung... apple will be in the big screen league so persons like my self who say iphone r too small might wanna try that 4.8 screen... so watch out sammy..