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

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

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53 Comments

1. wicpromd

Posts: 266; Member since: Aug 20, 2013

Rise of Sony is getting Near or Lg???

2. lee480 unregistered

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

4. LetsBeHonest

Posts: 1548; Member since: Jun 04, 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...

10. SonyFindOneDroidple

Posts: 865; Member since: May 11, 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

16. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

Oops my bad thnx buddy

11. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

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

17. dorianb

Posts: 617; Member since: Oct 24, 2012

LG my @**

19. rd_nest

Posts: 1656; Member since: Jun 06, 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.

33. jdoee100

Posts: 334; Member since: Jun 04, 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.

51. Trex95

Posts: 2383; Member since: Mar 03, 2013

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

53. Ronny666

Posts: 128; Member since: Jun 08, 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.

26. Mxyzptlk unregistered

That bandwagon is running it's course.

44. tedkord

Posts: 17489; Member since: Jun 17, 2009

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

39. Rorschach

Posts: 83; Member since: Apr 26, 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.

49. Trex95

Posts: 2383; Member since: Mar 03, 2013

Rise of LG and Sony and upcoming IPhone 5S.

3. zachattack

Posts: 621; Member since: Jul 31, 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

6. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

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

30. Googler

Posts: 813; Member since: Jun 10, 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.

32. Shatter

Posts: 2036; Member since: May 29, 2013

S3 was beaten and sales dropped after 6 months too.

5. mayur007

Posts: 593; Member since: Apr 10, 2012

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

7. anthonyspapa

Posts: 22; Member since: Jan 24, 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).

14. KillgoreTrout

Posts: 53; Member since: Sep 04, 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.

8. Arthurhkt

Posts: 727; Member since: Apr 19, 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.

9. MotorolaX

Posts: 17; Member since: Mar 04, 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..

34. Shatter

Posts: 2036; Member since: May 29, 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.

47. alouden unregistered

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.

48. heyhi

Posts: 137; Member since: Feb 19, 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. .

12. taikucing unregistered

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

13. Suo.Eno

Posts: 556; Member since: Feb 17, 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.

15. GeekMovement unregistered

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.

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