Samsung's CFO says the financial outcome for Q2 is not good, Galaxy S5 and mid-to-low range phones to blame?
Despite the numerous reports that the Samsung Galaxy S5 is selling pretty well both at home and in the US, the fierce competition from the likes of Sony, HTC, and LG has allegedly already undercut the sales of the latest Galaxy, thus decreasing Samsung's income. Additionally, KTB Investment & Securities, a Korean financial institution, blamed the company's expected not-so-great financial outcome mostly on weak demand for its low-end and mid-range devices.
It is predicted that Samsung might report year-over-year drop of its operating profits of roughly 16% and a general decrease of shipments by 12.5% - from 88 million to about 77 million units. These expectations already stray away from initial expert predictions that Samsung will ship more than 90 million units during Q2.
Samsung already experienced a slight loss of global market share during the first quarter of the year. The manufacturer's due to release its financial report for the financial Q2 of 2014 sometime in the beginning of July.
Samsung Galaxy S5
source: The Wall Street Journal, Electronista via Pocket-lint
14. itsdeepak4u2000 (Posts: 2604; Member since: 03 Nov 2012)
They need to change the design anyhow and somewhat prices too.
25. PhoneArenaUser (Posts: 5478; Member since: 05 Aug 2011)
I agree about design but what's wrong with prices?
40. marcski07 (Posts: 366; Member since: 25 Apr 2014)
prices of mid/low end phone are wrong, and somewhat not attractive too, they like mini-mes of S line, but retarded. there are local brand that are better and good looking and good speced, low/mid phones, like here in Philippines, Cherry Mobile, Myphone, Star Mobile, and some Chinese phones are taking over with their nice features. in my own perspective, samsung focused on competing iPhone, that they forgot the low/mid end phones... Sony and huawei is killing it in here, they have beautiful mid-ranged phones, and LG too, with their L series... and Myphone or what they call "Filipino Phone" one of the affordable android phone you can buy,. you can browse internet, watch YouTube, play games and watch even tv, or listen to radio.. for just $50 :)
52. itsdeepak4u2000 (Posts: 2604; Member since: 03 Nov 2012)
Now-a-days flagships are bit pricey. This could be one of the reason for blaming S5 sales otherwise nothing is wrong with S5 except design.
55. PhoneArenaUser (Posts: 5478; Member since: 05 Aug 2011)
"Now-a-days flagships are bit pricey."
Agree they are pricey but talking about Samsung's flagships they has +/- the same price as any other flagship (at least here in Europe).
45. WahyuWisnu (Posts: 1001; Member since: 29 May 2014)
I propose samsung to simplified the model line up and use German way of model number (mercedes benz and BMW).
Galaxy S - highest spec
Galaxy E - medium spec
Galaxy C - Low spec
Galaxy A - Lowest spec
Galaxy S mini, Galaxy S, Galaxy S maxi (same spec, different screen size)
Galaxy E mini, Galaxy E, Galaxy E maxi (same spec, different screen size)
Galaxy C mini, Galaxy C, Galaxy C maxi (same spec, different screen size)
Galaxy A mini, Galaxy A, Galaxy A maxi (same spec, different screen size)
49. sar44 (Posts: 197; Member since: 14 Apr 2014)
noobs-haters got their way
samsung made isocell, improved amoled, on of best battery life and speed, wateproof. others did nothing, except that the speakers for kids, gimmick qhd, which only harm.
51. sar44 (Posts: 197; Member since: 14 Apr 2014)
On the contrary worsened, htc removed OIS, Sony made the screen red and distorting oversaturated colors, and worsened the sound in the headphones, LG made qhd and twisted sharpness because of what the image will halo.
66. engineer-1701d (Posts: 839; Member since: 13 Mar 2014)
your the noob here we samsung fans wanted and they even said a new type of finish and look to the phone and it was crap all, just the worst ever, iso nice, amoled ok good battery ok speed +/- water resistant not proof, no wireless charge gimmick hr monitor, no front speakers big hurt because the s5 speakers loud but sucks. i wont leave my gs3 untill better look and spec my gs3 has 2 gb ram so does the 5 the note has 3gb ram
64. engineer-1701d (Posts: 839; Member since: 13 Mar 2014)
its whats we all told them when they annouced this crap no one will buy it. a stupid heart rate monitor and no real tech updates and ugly as hell.
82. corporateJP (Posts: 1555; Member since: 28 Nov 2009)
This is what happens when you flood the market with garbage, you lose that brand luster.
Try a Galaxy Ace or Centurion, let me know how that works out for you...
86. Ashoaib (Posts: 1923; Member since: 15 Nov 2013)
their ugly design is killing them... beastly spec'd enclosed in unattrative shell... there are many customers who never bother to understand the specs, they just look at the design and become fan. For example, why such a low spec'd apple is so popular? bcoz apple know most products are sold on its percieved value not on real value... so apple always try to bring something which appeal to our eyes, bcoz we can see better than what we can read... once we become fan then we create self justification by ourself to justify our choice... this is what keeping apple's customers and business intact... seeing is believing...
beside that mid range and low range of samsung are not decently spec'd like chinese competitors... I have seen the price of samsung's mid end and low end are so high that you can find something else decently spec'd in same price
2. express77 (unregistered)
Their flagships are great but their mid/low rangers are crap nowadays. And also the design.
9. hipnotika (Posts: 298; Member since: 06 Mar 2013)
galaxy s5's design is more ugly than mid/low devices
34. marcski07 (Posts: 366; Member since: 25 Apr 2014)
you're wrong because they are all the same!!!! same! same! same! that's why they find samsung boring!
10. ryq24 (Posts: 486; Member since: 17 Oct 2011)
Totally agree. Lg sony and htc have better specs in their mid range phone than samsung.
39. express77 (unregistered)
3. timukh (Posts: 163; Member since: 04 Feb 2013)
In my country at the time of launch s5 was priced at $833. Now it is selling at $600...!! The price cut was due to low sales. But samsung officials said it wasnt true. Well now i guess that it was actually true..
37. DocOc (Posts: 84; Member since: 23 Apr 2014)
Why would anyone pay $833 for a freakin phone??? I can get a 60 in flat screen TV for $600!!
47. marcski07 (Posts: 366; Member since: 25 Apr 2014)
WOW, 60 INCH FLAT SCREEN? FOR $600, what country where you from?in my country 60inch flat screen tv costs $1000+
5. chocowii (Posts: 327; Member since: 30 Jan 2014)
Youre on the top, only one place to go is to go down.
6. darkkjedii (Posts: 11102; Member since: 05 Feb 2011)
Simply put, just as with apple and the iPhone, it's time for Samsung to revamp the galaxy. Absolute great device line, but the looks are bland, although pretty, and the features are nice but not a huge leap. Not much of a jump, between s4 to s5. Apple and Samsung are in very good shape, but we all know, both could blow the kid off, if the really wanted too.
16. StraightEdgeNexus (Posts: 3197; Member since: 14 Feb 2014)
Agreed. They make S devices to compete with iPhones, so they must make their designs attractive. Also the touchwiz ugliness and bloat vs. iOS elegance and smooth performance should be solved. +1
21. darkkjedii (Posts: 11102; Member since: 05 Feb 2011)
I think the s6, and note 5 will change quite a bit. +1 back atcha
69. engineer-1701d (Posts: 839; Member since: 13 Mar 2014)
its called android stock hahahaha i like my touchwiz but i like tizen look better make touchwiz look like tizen/android L
7. sun0066 (Posts: 74; Member since: 12 Feb 2011)
selling a phone with 16 gb on board in 2014 , I mean a flagship , is inacceptable , but they do it for you have to upgrade it eventually , marketing strategies that are working in oposite way as intended
12. joey_sfb (Posts: 2892; Member since: 29 Mar 2012)
Hope they learned their lesson. 16G plus bloatware no deal for me.
80. pego99 (Posts: 55; Member since: 01 Aug 2012)
That is so true. I refused to buy a 16Gig unit I would have bought a 32Gig
8. uchihakurtz (Posts: 240; Member since: 12 Nov 2012)
I hope this will motivate Samsung to up their game next year. I really want to like the S5, it's actually near perfect but that design language, so awful.
11. mayur007 (Posts: 409; Member since: 10 Apr 2012)
Yes that will be buying same phone year and year again and again.
Same look phone again and again... with hardly upgrade.. things
13. tarek1980 (Posts: 52; Member since: 07 Jan 2014)
I have GS4 I didn't update for the GS5 because of the following:-
1- Finger print & heart beat sensors (this is a smartphone not any thing else).
2- poor design.
3- no OIS for camera.
4- Note smartphones became the real flagship but I don't want phablet size flagship.
5- small battery .
18. StraightEdgeNexus (Posts: 3197; Member since: 14 Feb 2014)
Only 2nd point is somewhat valid. Rest is BS.
29. neilmc1983 (Posts: 35; Member since: 17 Jun 2014)
It's not BS. i agree with tarek1980
1- Fingerprint sensor is poor and the heart beat sensor is a gimick.
2- The design is ugly and their design language is dated and repetative.
3- The stabilization of the Z2 and G3 put the S5 to shame.
4- Note does have better specs that the S series, but are too big.
5- Like the competition, Samsung should be using 3,000+Mha batterys
I've own the S1, S2, S3 and now the S4, i didn't get the S5 becuase it offer nothing useful over the S4 and its uglier with bigger bezels. the S5 is a step backwards. and the sales figures are showing consumers are not impressed and are starting to pay interest to the competiton from Sony, LG and HTC.
42. ManusImperceptus (Posts: 330; Member since: 10 Jun 2014)
"The stabilization of the Z2 and G3 put the S5 to shame."
And yet the S5 takes better pictures than either of the others, as noted on several sites specializing in evaluating phone cameras... Anyhow, the Lumia WPs rule unchallenged in this category.
46. StraightEdgeNexus (Posts: 3197; Member since: 14 Feb 2014)
Not that unchallenged, only 1020 is great and s5 and other flagships come pretty close to it. Its proven in gsmarena six way camera roulette that 1020 is no match for android flagships when it comes to HDR, Panaroma, video recording.
70. engineer-1701d (Posts: 839; Member since: 13 Mar 2014)
yes lumia does if you dont mind waiting 20 sec for taking the pic
44. StraightEdgeNexus (Posts: 3197; Member since: 14 Feb 2014)
1. Read carefully he said he will not buy S5 because it has fingerprint and heartrate sensor. If he thinks it is a gimmick, then he shouldnt use it.
2. Agreed but it is better than S4.
3. S5 and N3 proved OIS is not that important and DIS gets the job done if not better. And z2 doesnt have OIS.
4. The battery is small, yet has a great endurance, you are talking like an average joe who thinks bigger is better.
65. neilmc1983 (Posts: 35; Member since: 17 Jun 2014)
now i know you are talking complete rubbish!
1) The sensors are gimmick and shouldn't be on there, i'd prefer Samsung to invest their time and money in to developing something useful that the majority or users will use. i will bet you less than 5% of all S5 users actually use the heartbeat sensor. that's not enough to validate its existence.
/469/284469/samsung-galaxy-s5-vs-galaxy-s4-540x334.jpg?1394635092The S4 is better looking than the S5, thinner bezels better screen to phone ratio. S5 is a step backwards. a 0.1" screen size increase is not worth an upgrade.
3) YOU ARE A IDIOT!! watch this http://youtu.be/ezvq6DLn3ho?t=
The Z2 DESTROYS the S5 in stabilization. you have no idea what you're talking about.
4) The battery endurance on the S5 is due to the AMOLED screen and some software tweeks. the S5 could have amazing battery life if Samsung put a 3,000mha battery in it like Sony or LG, but its cheaper to put a smaller one in as the AMOLED compensates for its shortcomings. in my eyes, Samsung skimped on this one.
71. neilmc1983 (Posts: 35; Member since: 17 Jun 2014)
StraightEdgeNexus ..... you own a Moto G and a Nokia X2-02, before that you had a S2 and a Nokia 3110!!!
PLEASE DON'T TALK ABOUT THE LATEST FLAGSHIPS, YOU KNOW NOTHING!!
I've had the S1, S2, S3 S4, iPhone 5, LG G2, Xperia Z1, Xperia Z1 compact, Nexus 4, Lumia 1020 and i will be getting the G3.
Trust me friend, the S5 is a let down..
72. ChandlerBing (Posts: 35; Member since: 17 Feb 2014)
Woah, back down there Richie McRich. Just because you own some latest flagships, doesn't mean you make fun of him. What do you do with so many phones? Do you have a sale going on? I'd really like to buy the Lumia 1020.
73. StraightEdgeNexus (Posts: 3197; Member since: 14 Feb 2014)
I can talk about latest flagships, because my close friend has a smartphone store, and I get to play with new phones for a week as if i own them. I have tried S5, M8, Z2 and now i am playing with Oppo 7a. Bye Felicia.
74. neilmc1983 (Posts: 35; Member since: 17 Jun 2014)
Sniff sniff....... can you smell that?......smells like bull sh*t to me!
75. StraightEdgeNexus (Posts: 3197; Member since: 14 Feb 2014)
Whatever suits you, spoiled br@t!
76. neilmc1983 (Posts: 35; Member since: 17 Jun 2014)
1- i work hard to earn my own living
2- i buy phones cheap and if i don't like it i will sell it for a good price and put that money towards a new one. it's not hard. My Lumia 1020 is on ebay now and already i have what i paid for it. and that money will go towards the G3
Go back to your Moto G keyboard warrior.
85. willard12 (Posts: 775; Member since: 04 Jul 2012)
Is the S5 low or mid-range?
"blamed the company's expected weak financial outcome mostly on weak demand for its low-end and mid-range devices."
31. 14545 (Posts: 1106; Member since: 22 Nov 2011)
Also, too big. Needs to be *under* 5 inches. Not over.
35. 14545 (Posts: 1106; Member since: 22 Nov 2011)
Sorry, I glossed over #4. You already covered this.
57. Kakarotto (Posts: 90; Member since: 07 Dec 2010)
You know, there are plenty of smaller smartphones for your little hands you ignorant.
58. 14545 (Posts: 1106; Member since: 22 Nov 2011)
If you are going to attempt to insult ones intellect, at least finish the sentence. Damn stupid people never stop to amaze.
Also, please tell me of one "big name" phone that has *flagship" specs in a smaller device? Please, just one, tool?
I know this is a difficult concept for this slow among us to grasp, but I can use a bigger phone. I can get my "hands around it". I just don't like to. I like to use my devices with one hand, and you can't do that *comfortably* with one hand. I know, a very difficult concept to grasp.
59. Kakarotto (Posts: 90; Member since: 07 Dec 2010)
So buy cheaper phone or an iphone u dwarf.
61. 14545 (Posts: 1106; Member since: 22 Nov 2011)
I DON'T WANT A CHEAPER PHONE, OR A STUPID iPHONE, YOU MORON.