Analysts believe the Galaxy S6 won't be enough to stop Samsung Electronics' earnings slide

Analysts believe the Galaxy S6 won't be enough to stop Samsung Electronics' earnings slide
Sluggish sales of the flagship Galaxy line, along with continued pressure from Chinese manufacturers, among which Xiaomi, and increased competition from the company's arch rival, Apple, are cited as the three main reasons behind the earnings slide in Samsung's camp. Year-on-year, in 2014 Samsung's operating income dipped 32.2%, down to 24.9 trillion won (~$22.96 billion), and analysts now forecast that 2015 will bring about a further 6% drop.

If these predictions pan out, Samsung's position will be further diminished, and despite the generally very positive Galaxy Note 4 reviews (ours included) and the upcoming Galaxy S6. That latter one is widely rumored to have hit the reset button at the smartphone division at Samsung, and we're told to expect a device that has been re-designed from the ground up. Even TouchWiz – Samsung's proprietary Android interface – will be losing some weight in order to become more like the stock version of the platform, rumors say. It's fair to say that we're quite anxious to meet the Galaxy S6 come MWC 2015, for Samsung has hopefully gone full out in order to stem the tide.

According to industry analysts, cited by The Korean Herald, better performance within the memory chips division at Samsung may partially cover for the losses that Samsung Electronics (Samsung's smartphone daughter company) incurs, but they agree that the tech giant's best days are likely already behind it.

Related phones

Galaxy S6
  • Display 5.1" 1440 x 2560 pixels
  • Camera 16 MP / 5 MP front
  • Processor Samsung Exynos 7 Octa, Octa-core, 2100 MHz
  • Storage 128 GB
  • Battery 2550 mAh(23h 3G talk time)

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56 Comments

1. BobbyBuster

Posts: 854; Member since: Jan 13, 2015

There's simply no cure for this since no on can justify even reasonable margins when their products run CrapDroid.

13. AlikMalix unregistered

Bobby, I love iOS, but you cannot justify your passion for Apple iOS by calling Google's mobile OS "CrapDroid". It may have been "crap", compared to iOS in 3 or 4 years ago but now Android has their advantages over iOS and they're diligently fixing problems that plagued Android phones like lag, and background resource management issues is being erradicated with faster processors and more Ram. If they stop with bloatware from manufacturers and carriers - they might entice me to try Android again. But considering the article: Samsung has a few "props/features" that make it stand out from the rest - S-pen specifically on Note 4 is absolutely the best stylus in the world (I would know I use quite a few on my iPad/iPhone). Note 4 and a few Alpha models are great looking phones (I would even say in some ways surpass the new iPhone 6/6+). And dont forget who made the bonkers phablets a normal thing today. Touchwiz is objective (I think it's not helping Samsung at all), and their "features" are more or less "gimmics". But Apple also had a few tries that didnt catch traction, for example: AirDrop works Great, but no many use it - it would be awesome if everyone had it turned on to allow everyone see it, so I can drop photos to the guy/girl in the car next to me in traffic, lol, but people dont turn it on - it didnt catch on. Newsstand is definatly a dud, and Passbook is pretty much used by frequent travelers, sport fans, and starbucks frequenters - but not me or almost anyone I know. So, there... I think Samsung is a powerful company, and their mistake (based on my "I-dont-really-know-anything-about-running-a-multi​national-corporation" opinion) is they are confusing the market with weekly "new" phones, and bloating their phones with resource hungry "features" that only a few find useful. But add insult to your injury - Samsung slightly topped Apple's unbeatable satisfaction ratings in recent survey... ... it has nothing to do with their products running "CrapDroid"...

30. androiphone20

Posts: 1654; Member since: Jul 10, 2013

This is argument is pretty weak. I really like the parts of your post that you state your opines as fact.

34. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Agreed Alik, by no means is android crap, if anything Google's android forced Apple to get off there duff, stop resting on their laurels and revamp iOS.

36. Lycan155

Posts: 254; Member since: Nov 24, 2013

Seriously dark you are one of the few people here who isnt biased toward a company and a respectable guy who love tech as a whole , i salute you my friend , keep going and ignore haters and trolls

39. Gp_Customs

Posts: 269; Member since: Jan 14, 2015

Agree to you, he's not bias, but he's still an iFanatic. +1 Sometimes he reverts to his iThingy.

43. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Gotta give credit where it's due bro, Google gave Apple some shock lol. We the consumer win from it too. I've said time and time again, I don't care who copies who, just give me the features bro. Hope all is well. +1

53. iOSLMFAO

Posts: 290; Member since: Dec 15, 2014

"their", not "there". C'mon, this is basic first grade stuff. A Grammar Nazi such as yourself should know the basics. Try lifting a BOOK sometime.

48. Salazzi

Posts: 537; Member since: Feb 17, 2014

Alik I commend you for not resorting to mud slinging as most would have. You were very mature in your response. As an iPhone user (who has also used a slew of Android devices as well), I agree with your assessment. I do wish Samsung luck though as I think there should be multiple options on the market. I must admit that one of the greatest mistakes Android device manufacturers made was focusing solely on specs. They got a nice portion of the population on their boats by bragging about cores, battery size, megapixels, etc. I'd say the only ones who truly caught on are Motorola. It was the first Android phone that I felt compelled to keep. The spec sheet was poop compared to other phones of the day such as LG G2, BUT the phone worked smoothly and without a stutter. The sticking point was the experience it gave you.. from gestures, to wiggles, to voice.. they pushed the user to want to interact with the phone. It seemed that what it did do, it did well. That is also what makes me come back to Apple and to stick with it each and every time. Spec sheets are largely irrelevant.. they build no loyalty. Samsungs strongest point has always been specs, but what happens as other manufacturers put better specs for a smaller price tag? The obvious happens.. you lose business.

40. Gp_Customs

Posts: 269; Member since: Jan 14, 2015

All in all, anyone who buys an iPhone at this point is an image conscious, fad following idiot. Android and the Android manufacturers are offering faster, more flexible and more reliable devices with a minimum of hype.”

42. Gp_Customs

Posts: 269; Member since: Jan 14, 2015

Even an image conscious, fad following idiot knows that the iPhone 4S looks just like the year and a half old iPhone 4. Nope, fad following idiots are not there among the millions lining up and buying the iPhone 4S. They are buying the identical looking iPhone 4S because it’s the best damn smartphone on the market. Hell, even your 3 year old iPhone GS is still being sold and it is the #3 best selling smartphone in the USA. No fad conscious buying that phone either. It’s sad that a third generation iPhone is still outselling all Android models. Maybe, just maybe the iPhone experience is really that much better than the Android experience. In fact, the only thing missing in the iPhone experience is the need for Anti-virus software.

49. TBomb

Posts: 1181; Member since: Dec 28, 2012

The iPhone GS is the 3rd best selling phone in the USA? I'm curious where you're getting that fact from.... Thy "fad following idiots" aren't buying the 4S when they have the 4 because they have 2 year contracts that they're stuck in.

2. androidmachines

Posts: 31; Member since: Jan 10, 2015

Competition is healthy. I'm a Sammy fan but I definitely regard brands like Xiaomi, Oppo as worthy contenders as they offer a different perspective to the Android experience which Sammy redinfined in more ways than critics would like to admit.

6. vincelongman

Posts: 5623; Member since: Feb 10, 2013

To be honest I was very happy to see Samsung's lower sales Because all I see in public is Samsung Galaxys or iPhones Would be good to see more variety And lower sales is good for us consumers since it encourages Samsung (and the other OEMs) to try hard for our money and usually leads to more innovation

14. AlikMalix unregistered

vince, sometimes when I ponder about these things, I'm hoping that Apple will see a huge but temporary downfall - which forces giants like these to come up with revolutionary products (or die trying)... If Apple can influence the world to switch to mobile pay, or go beyond visible pixels (300ppi), or push for 64bit infrastructure, create an ecosystem with a simple App Store, Touch ID, or the good ol' multi-touch interface, and etc - I wonder what Apple or (any Giant for that matter) would do when pushed against the ropes... Here's dreaming of Tizen to put Apple in it's place (no sarcasm). Imagine what Samsung can do with it's own ecosystem building on what we learned from iOS, Android, WP and security integrity of BB.

18. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Tizen will do nothing for the consumer but fragment the market like in the good old days where every phone company had their own crappy OS with its own crappy market place. With everyone under the Android umbrella, they are forced to compete hardware and software wise (since mods to Android are totally allowed) instead of just making bigger walls for consumers to force them to stay in their ecosystem. It will also likely fail because software isn't what Samsung is good at, it is hardware. The S6 will prove that once again because Samsung is looking to correct all the right weaknesses this time instead of just copying Apple's strategy. They already mentioned faster SSD which is right now the biggest bottleneck in all high end smartphones. AMOLED has reached a point where it is now ahead of LCD in almost every way so much so that even Apple is considering it. That, combined with all the competition they are facing, they will try to fight their way back to the top.

25. AlikMalix unregistered

You just haveto disagree with an Apple user, huh? Must be a rule of some sort.... I guess you're entitled to you opinion... But stop with the f**ken "forced to stay in their ecosystem" and "making walls for consumers" bulls**t... A different type of ecosystem is just another choice - and you're stuck so far up Androids ass that you dont see how well "walled garden" is received by consumers where one company is outselling several every year... NO ONE IS FORCED = People switch back and forth all day long so, please dont insinuate s**t when you dont know these people... I will agree this year OLED has improved extremely well, but dont confuse rummer with real news, OK, pumpkin? Anything you read about Apple's intentions before the announcement is not a statement from Apple but a speculation by tech sites... BUT, if OLED or any other type surpasses whats on my phone - I would sure hope that my preferred manufacturer will use it when I'm ready to upgrade... but if you think for one second that there's no place for another mobile OS - you're wrong - you better thank your android gods that there's different things out there otherwise there will be no growth, and who knows without Apple, Android would have ended up as a BlackBerry knockoff instead of a touchscreen interface... geez...

31. androiphone20

Posts: 1654; Member since: Jul 10, 2013

I don't always agree with Flash but I'm afraid he's right. We can't have so many incompatible devices, running different software on different hardware. That's a really backward way of thinking. I see a lot of people here confuse abundance with choice, too many choices make the platform feel drab and boring. Fragmented OSes were a pain back in the day that developers wouldn't even consider makings apps for phones. Google even complained having to develop software for hundreds of devices running different software that could be stacked in closet, before Android. So meditate to this... Less is more

32. AlikMalix unregistered

Some good points. Primarily I was upset because within his post he took a jab at Apple's ecosystem at the expense of actually making a good point - just tired of it... But I'm more curious what Samsung can do if they had their way - they're not a bunny you can shake a stick at like HTC, LG, and Sony - they're a bear and a very capable one. I think windows mobile is a very compelling platform - I'm extremely disappointed that it's not taking off like Android did, same goes for BB. So the hope stays with Tizen, especially if they can license Android Apps like some rumors suggest... I think that we can benefit from a Third Big player... Look at the history... Apple shifted Android development toward touch screen instead of BB keyboard type phone. Likewise, years later, Android pushed iOS to open up and shake it up. Then windows phone comes out and we got a third choice, and a good choice at that just not gaining popularity... maybe Samsung's vision will give us a "Third" - I'd love the drive competition will make - sky's the limit: New Tech, Lower Prices, Better Design... All above examples have one thing in common: YOU and I WIN!!!

47. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Maybe its just me but I just can't see how he took jabs at Apple (that's not to say he doesn't), he just pointed out how Apple considers better display options which is not a bad thing per se (also, it's still baseless). Regarding Tizen and other smaller OSes I stand by my last post.

50. AlikMalix unregistered

You do know he was talking about likes of iOS when he said "instead of just making bigger walls for consumers to force them to stay in their ecosystem."

51. androiphone20

Posts: 1654; Member since: Jul 10, 2013

That was open for interpretation. You fell for it.

35. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Post of the day bro +10

41. AlikMalix unregistered

If I upvote your post, does that mean I'm actually upvoting my own post...? lol...mindblown

44. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Lol yep. Good one

3. tiara6918

Posts: 2263; Member since: Apr 26, 2012

The product itself no matter what it may be is not the answer for them to stop declining. What they need to is to change their strategy from competing cheap chinese markets. I was hoping to see it from a5 and a7 but looks like I'm wrong, it's still too pricey and it's specs are still underwhelming to what the competition can offer. They also need to convert apple fans to switch to their camp, apple has so far been the leading cause of their decline. Bashing apple or putting gimmicks on the phone will not help them at all. iPhones are known for status symbol, high price that doesn't depreciate too quickly,software updates support for many years,easy to use ui,customer support,etc. They need sort of do what apple has so they can have more fans

4. kent-gaga

Posts: 609; Member since: Apr 10, 2012

will Samsung ever become the next Sony?

29. AlikMalix unregistered

No, because Sony doesn't make Dishwashers and Refrigerators...

5. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

oems who are well prepared has divided their smartphone market into more than two Brands or two companies. Xiaomi and Redmi Huawei and Honor Lenovo and Motorola Oppo and Oneplus Vivo and Blu HTC one and desires they're divided the brands to strengthen their position on each of Segment, can be divided by price range, as well as region. when we think about Redmi, or Honor we know it's a damn cheap sh*t. when we think about Moto, or Blu we know it's an American Android. This is what Samsung failed to do so, putting everything in one brands and don't know which position of the brands Sammy decide to. Is galaxy a premium brand? Budget phone brand? or what?

7. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

If you think dividing two brands is wrong, please give me the latest link to prove all Oems I mentioned above CURRENTLY has the bad financial performance. Lots of links I can prove Samsung slumps recently so don't test my temptation to spam it out

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