Samsung says that fourth quarter smartphone sales declined, tablet sales rose


Samsung has just released its earnings for the fourth quarter of 2015, and announced that a year-end inventory adjustment led the company to report a decline in smartphone shipments when compared to the third quarter. Besides the sequential decline in shipments, sales declined as well thanks to a product mix that favored low to mid-range handsets.

Led by the Samsung Galaxy Tab A and the svelte Samsung Galaxy Tab S2, tablet sales rose in the quarter to 9 million units. That is impressive considering that the tablet market has been weak. Yesterday, Apple reported that iPad sales declined by 25% during the quarter. For this year, the manufacturer expects single-digit percentage growth in both smartphones and tablets. Competition will be tougher and demand will be softer. Through innovation, Samsung expects to increase smartphone sales and return margins to double digits. For the quarter, smartphone margins were 8.9%, up from the 7.5% achieved in 2014.

For 2016, the company looks to increase the importance of tablet and wearable sales to the bottom line. It also hopes to increase the usage of mobile payment service Samsung Pay. Its 4G LTE network services covered global markets and added to the bottom line in 2015. Samsung expects to continue rolling out these services around the world.

For the fourth quarter of 2015, Samsung's mobile division had $21 billion USD in sales, down 4.9% year-over-year and 6% sequentially. Operating profits amounted to $1.85 billion, up 13.8% year-over-year, but a 7% decline from the prior quarter. For all of 2015, the mobile division rang up $87 billion in sales for the year with operating profits of $8.5 billion. That is a 7.3% drop in sales from 2014, and a 30% drop in profits. 

source: Samsung

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49 Comments

1. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Hope Samsung make another 16x9 tablet in the 8 inch range. Need one for media consumption.

2. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

Everyone's feeling the pinch.

6. jalebi2000

Posts: 181; Member since: Mar 01, 2015

Change your profile picture?

11. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

Are you his wife or something?

29. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

Right bro lol. Why would that even garner his attention?

28. darkkjedii

Posts: 30977; Member since: Feb 05, 2011

Make me change it...jealous much???

40. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

He ASKED you..."Change your picture?" He didnt tell you to change your picture. Reading and comprehension skill failure. Typical. Not reading what is there, just seeing what you "think" is.

19. Tizo101

Posts: 527; Member since: Jun 05, 2015

be mindful of articles written by Alan F, because there could be a lot of distortion. In this article he throws many numbers around that would be hard to understand for the casual reader. This is what I call 'the Alan F special' - articles written by Alan F are epic though and I love them.

38. Macready

Posts: 1818; Member since: Dec 08, 2014

Yes, but what this article fails to highlight is that the higher tablet sales in the last quarter are explained by a higher average sales price (in turn also thanks to the S2), whereas with the smartphones, it's the other way around. They sold more phones than the last quarter and the same quarter last year (+14%), but at a lower average price. The interesting bit is that Samsung thinks it can do the opposite for 2016, less phones for a higher average price. I doubt the S7 will go up in price, they probably see success for the A series.

3. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

They definitely p*ssed off a lot of power users who loves expandable storage

10. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Nobody cares about power users, they are irrelevant in year-end balance sheet.

13. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

YOU do not care about power users. Samsung cares now lol

17. JMartin22

Posts: 2369; Member since: Apr 30, 2013

They're so miniscule that they don't even register on the pie chart of consideration. The decline in sales are coming from increased competition in the high-end and low-end spectrum and market saturation.

25. Shocky unregistered

GreekGeek appears to have delusions of grandeur. Enthusiast's or "power users" represent a very small percentage of overall sales and even among "power users" there is a debate about the need for an sdcard slot.

32. tedkord

Posts: 17320; Member since: Jun 17, 2009

No, they don't, because power users are maybe 0.1% of the market. You could literally make the perfect power user phone and it wouldn't make a noticeable difference in sales.

41. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung has always cared about power users which is why they made the Note in the first place. Removable batteries and sdcards are not significant to all power users. That is fact, whether you liek it or not. Now since I need sdcards, I didn't like the fact it was removed. I also know it was removed due to incompatibility with UFS 2.0. So maybe they should have left it as is, until a compatible controller was made available. I dunno. What I can say is the Note or S isnt any less powerful without those options. What Samsung should have did was make the Note 5 128GB period and the removable of the sdcard wouldnt have been a big deal at all. As far as the battery? with quick charge you just don't need them. Its that simple. If you need those options, there are phones that have them. Buy it and your problem is solved. Bitchin about it here isnt goign to help. Do as I did. I personally emailed Samsung myself as a Note buyer and let them know how I personally felt about the move. Their answer? They acknowledge that many S and Note users were disgruntled about the changes to the S and Note series. They also mentioned that based on their survey, these features simply were not used enough to justify the cost to continue to implement them. They also mentioned the fact that the sdcard card was removed due to incompatibility with UFS 2.0 and they were working on a tentative solution. They also mention with quick charge 2.0, removable batteries have been replace with options like extended batteries. If we all sat here an bitched for old technology instead of moving forward, we would still be using 5.25" floppy disks, 3.5" floppy disks, optical drives, slow IDE controllers and many other dinosaur technologies from the 80's. Either move on to better stuff or go an pay for older stuff.

34. 497362

Posts: 60; Member since: Aug 27, 2015

Hey, you cant say that here in power user club. Those 50 power users will get insulted.

4. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Again. No surprises. Samsung if you make Android device, please make it in a way that would appeal to Android user, blindly copying from Apple product is not going to work because Android is a open and free platform. We jump from brand to brand with one account. Apple user don't have such an option therefore Apple could even remove the headphone jack from their phone and it will still sell millions. Yes Samsung, you can envy Apple but you can't follow their business practice.

5. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Well it's quite obvious that the S6/Note 5 was a blunder on their part...I hope they get their act together

42. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Really? They sold more phones this year vs last year. Samsung ha mentioned all year that they are beign attacked at the mid and low end phones. Even PA had an article which showed Samsung sold more of the S and Note over last year, but Samsung took a hit from Chinese OEM...I REPEAT>>>>>SAMSUNG TOOK A HIT FROM CHINESE OEM's. Since Chinese OEM's don't make Hi end phones that cost as much as the S and Note, then what phones do you think those cheap Chinese phones were attacking? YOU ARE A CLUELESS TECH WANNABE!

9. rd_nest

Posts: 1656; Member since: Jun 06, 2010

What would 'appeal' to an Android user?? Name such one device that 'appealed' to Android user, and it's sales numbers for this Quarter.

14. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Does the saying every strokes for different folks rings a bell? Everyone has their own priority. For me, a high end enough spec at a rock bottom price, that would translate to a 6" QHD inch screen, Snapdragon 805, 3GB Ram and 64GB of storage. From this spec you can already guess the phone that would meet my expectation, a Nexus 6. Another user may still be rocking with a Galaxy Note 2, and are happy with that phone. Yet another a super cost effective, XiaoMi RedMi... all this make up the 80% market share that Android holds today.

15. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Finally, a person that want an iPhone would buy an iPhone, nothing else. Samsung try to convert iOS user by mimicking iPhone design, so rd_nest would you buy a Note 5 to replace your iPhone? I have been buying Note 2, Note 3, skip Note 4, waiting for Note 5 till it was release without removable battery, IR blaster and microSD card. I blinked, without those features, i rather buy a Nexus 6, its cheaper by $150 and still have regular Google updates. My phone choice changes when what's available to me changes. Hope I have answered your question, rd_nest.

20. willard12 unregistered

You have to give Samsung credit in the area of innovation because they would need to have invented the first time machine in order to mimmick iPhone's design since Samsung had the design in 2012. http://www.phonearena.com/phones/Samsung-ATIV-S_id7463/photos?image=37769 And if the Nexus 6 doesn't have ir blaster, removable battery, and micro sd, why isn't it the case that Samsung is mimmicking Google? Better yet,why is it not said that Google is mimmicking Apple?

30. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

A good logical thinker, willard12. For me personally, I am a long time Samsung Android devices user and therefore have a certain expectation of them and if they don't meet those expectation i react negatively. Thanks to Android's openness, moving away from Samsung is an account log-in away.

45. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Because they all hate Samsung, using their own words! very logical post. Good foresight, awesome post. An "A" for common sense An "A" for using logic An "A" for shutting down idiots.

7. AkoSiKuting

Posts: 88; Member since: Dec 09, 2015

no no samsung, no thank you :)

33. tedkord

Posts: 17320; Member since: Jun 17, 2009

Thank you, Samsung, for my Note 5, the best large display smartphone on the planet.

8. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

How do I change back to PA mobile...halpppp!

12. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

Deep down at the bottom of this site You'll find the power of the mobile might!

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