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

Sluggish sales of the flagship Samsung 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...
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56 Comments

9. tiara6918

Posts: 2263; Member since: Apr 26, 2012

that's why more iphone users are switching to apple from samsung. Samsung devices can't be told apart, their value depreciates too quickly. Look at the iphone5s, it's more expensive than the s5. Their products don't feel premium and so on. Samsung needs to make a separate the galaxy line and create a new segment for their high end devices

45. Gp_Customs

Posts: 269; Member since: Jan 14, 2015

lot of people are missing the obvious: Apple releases about one phone a year, so there is a good chance that 6 months from now the best iPhone on the market will still be the iPhone 4S. In contrast six months from now there will be about 10 different, far superior Android phones.

46. Gp_Customs

Posts: 269; Member since: Jan 14, 2015

After using your iPhone for 18 months, it still retains 53% versus 42% for Android, and 41% for BlackBerry. That’s $312 of cash value if you resell your old iPhone on eBay or Craigslist. iPhones have a reputation for being premium products, while Androids have a more democratic marketing angle (BlackBerry’s consumer marketing angle appears to be indecipherable). In fact, the cost of ownership of an iPhone is the lowest of all platforms:

8. amozhi

Posts: 131; Member since: Oct 23, 2012

Sammy left out millions of GS3 owners without an update. Promise 3 years of update for flagship phones. Then sales will pickup.

10. Loubielou

Posts: 603; Member since: Jul 11, 2012

O.k people will buy the Chinese Budget phones but are they as Good as Samsungs,people nowdays are finding phones too expensive for themselves,so will buy the Chinese makes,but if these phones were so on Par with Samsungs Why?are they not Sold Worldwide,then the Critics would Pull down the Xiaomi and Huawei phones and people would realise they are not good in the Performance Section but Good in the Looks

12. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Because we don't feed the patent troll country who love to discriminate Asian. You people will not gonna buy anyway. Wise consumers in third world are loving it and we received positive feedback from India, and south east Asia

17. Chuck007

Posts: 1410; Member since: Mar 02, 2014

Yes they love to discriminate against Taiwanese and Korean companies. ..oh wait.

19. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Yes Apple never sues Samsung ..oh wait

24. Chuck007

Posts: 1410; Member since: Mar 02, 2014

Don't blame you cause of your different upbringing. But note American companies sue each other for intellectual property violations as well. Much like how Chinese companies sue their own for such violations... which is ironic cause the major Chinese electronics oems benefit from sign blatant inspirations to drastically reduce RND and marketing costs and aim to build a name for themselves through the cheapest means possible. Does it work for them? It obviously did for Xiaomi. Should the likes of Apple, MS, and Google sit there and give them the liberty to do what they want when they reach their own turf after all the money they spent on developing the technology? I think not. Another thing to keep in mind. Not everyone raised up with western beliefs is against the coming China phone invasion. Cheaper prices (which it'll force others to do) is always welcome. I know many here will feel the same. And before you think the whole world is racist against the Chinese like they want you to believe, think twice about that and experience it yourself instead of viewing the western world through state media. I have spent a considerable amount of time in Canada and many treat me just the same as anyone else. With dignity and respect.

11. Rain017

Posts: 61; Member since: Jul 11, 2014

honestly whats killing Samsung is their design from low-end to high-end they all look the same flagship is not given the flagship treatment in a sense that their mid range is almost as good as its flagship quite disappointing they had a good run they should limit releasing crappy phone and just focus on flagship, mid-range and low-end and stop releasing countless of look-alike phones

15. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

S6 won't be a problem if design is great, the main problem is the low-mid range crap that Sammy is providing which is being killed by Chinese OEMs now-a-days which is ultimately a profitable area. Bring less phones with good specs and prices.

16. aha111

Posts: 3; Member since: Jan 22, 2015

People buying apple iPhones not because of its functionality instead they think they are using a luxury phone or brand which brings some social status

20. tiara6918

Posts: 2263; Member since: Apr 26, 2012

yes I agree with you. And samsung doesn't have that and their value depreciates too fast while apple doesn't. You get more resale value on an iphone than on a galaxy

28. AlikMalix unregistered

I disagree, I think people buy iPhones because they provide all they need in a brand that feels safe, whether it's usability, face-to-face assistance/support, resale value, 3rd party support, exclusivity in compatible products or available apps, "if it aint broke, dont fix it" mentality, satisfaction ratings, brand recognition... just to start off... I know many buy Apple because they own a Mac, some buy it because of Facetime and iMessage and FindMyFriends or ApplePay, or iTunes, or design, or Siri, or iApps that are now Free (I personally love iMovie and GarageBand). I primarily bought an iPhone 5S (after trying S4) specifically because Google Now is not Siri, it's a different animal - good features, but Siri does so many things different/better/easier instead of guessing my behavior (which Google Now did well sometimes, but wrong other times defeating the purpose).. Can we just leave it at "People buy iPhones because they're not you" not this BS about social status. Yes there are a few that think iPhone are cool to own, but dont kid yourself - iOS functionality is just as powerful as Android, where Android have their exclusives, and iPhone have just as many of their own exclusives... ok, sweetie?

21. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

They did an amazing job with Note 4.. cant wait to see galaxy s6, but i am also exctd with a high-end Tizen smartphone considering the very fluid OS it offers, more fluid than high end android and even iOS phones, check it out at youtube/sammobile. It's insanely fast and they actually implemented what I want their themes to look --- that you can change the bluegreen color dominating the tabs of UI

26. AlikMalix unregistered

Yep...

22. Bozzor

Posts: 248; Member since: May 02, 2012

A bit hard to predict how a product will sell when there is nothing confirmed about it other than rumours. Take the analysis seriously when the product has been shown and there is some buzz (or lack of it) based on fact.

23. abhi24

Posts: 18; Member since: Mar 23, 2014

Galaxy brand rose coz it had better specs than iPhone, and was less pricy. Now, with each generation of galaxy s, price has gone up steeply, and there is no big difference between apple n Sammy now. Function-wise,there was never a big difference between iOS and android unless n until u r a geek. With bumped screen size in iPhone, the concept of better phone phone, better screen n better specs, sth that sammy fans swore off, at lesser price, has totally eroded. That's the root cause of sammy sliding recently. At the flagship level. And when it comes to mass market, I mean the entry level, Chinese oems are too competitive for any price bracket. Poor update history for lower end phones, far too laggy performance, and all plastic replicas; obviously sammy can't lure customers by its name alone

27. SuperNova

Posts: 649; Member since: Jan 15, 2015

Samsung has dominated market share with huge profit in recent years. Just because it dropped slidely last year doesn't mean that it fails again this year. Samsung devices are not bad, it's because of tough competition from Chinese makers who sell its phones too cheaply. But Samsung has learned from that. This is Samsung, not Sony or Nokia, it won't let go to the Chinese easily this time. Let's see

33. greenelektron

Posts: 537; Member since: Sep 10, 2014

Sammy will give s6 a nice and new design but they will also pump mid and low end devices that exactly look like the s6 design. So you can never tell which is premium and which is not so overall the value falls. Sammy should totally separate the premium from the not premium in every way, and most importantly, set the right price for their phones.

37. Lycan155

Posts: 254; Member since: Nov 24, 2013

Competition is healthy for us consumers but it certainly isnt for sammy haha

38. Lycan155

Posts: 254; Member since: Nov 24, 2013

Samsung also needs new tablets where is note 10.1 2015 edition ? Also update note pro and tabs pro to lolololoipop ..... I swear this company =\

52. fzacek

Posts: 2486; Member since: Jan 26, 2014

I truly believe that if Samsung got rid of TouchWiz and replaced it with stock Android, their sales would increase drastically...

54. Elfmonster unregistered

Well, no duh, everyone wants giant phablets. Samsung has all these phones yet fails to see the correct window of quality sizes to offer. The fact there's no 6 inch Samsung with Note 4 specs is just we-don't-want-more-money fail.

55. Love_gadgets

Posts: 7; Member since: Oct 31, 2012

Samsung is losing because of so many me too products in its lineup. Neo range and mini range are the biggest reasons samsung is loosing its sales of flagships.

56. razraptre

Posts: 168; Member since: Oct 21, 2014

They keep launching so many new devices. Every successive Galaxy cannibalizes sales off the previous model.
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