Samsung shares plummet to two-year low following iPhone 6 launch, early Galaxy Note 4 launch to counter the iPhone 6 Plus

Samsung shares plummet to two-year low following iPhone 6 launch, early Galaxy Note 4 launch to counter the iPhone 6 Plus
According to BusinessWeek, Samsung's shares have plummeted to their lowest level since 2012, after news of Apple selling 10 million units during the iPhone 6's launch week broke out. By introducing the iPhone 6 Plus, Apple even managed to disrupt Samsung's traditionally strong sales of big-screen smartphones.

The iPhone 6 pre-orders came across as "unexpectedly strong" for Samsung, which also reduced its profit estimate to 4.7 trillion won from 5.7 trillion won (1 trln. won = 950,498,000 USD) and acknowledged that its positions in China and India are weakened by smaller rivals that offer cheap, fully-featured handsets . The situation in the Chinese market is made even worse for Samsung by the government asking its three state-owned carriers to lower promotional spending (including subsidies) over the next three years by a combined $6.5 billion.

To defend its positions, the company will continue its promotional efforts, and is about to release its new Galaxy Note 4 handsets earlier than planned to counter the iPhone 6's strong launch. As it already has a direct competitor to the iPhone 6 in the face of the Galaxy Alpha, this time Samsung will be trying to combat the larger iPhone 6 Plus' offensive in the big-screen smartphone segment. 

Its plans to market the Note 4 in its homeland of South Korea are aggressive. Initially scheduled for October, the Galaxy Note 4 and Galaxy Note Edge will launch on September 26, at a 10% lower price than what the Note 3 used to cost. It is said that Samsung's internal sales target is to ship 15 million Galaxy Note 4 units in the first month, which sounds wildly ambitious considering the global market saturation in the high-end, big-screen segment and the interest in the iPhone 6 Plus.

Still, the Galaxy Note 4 is an extremely compelling device, and Samsung's increased marketing push could give it its much sought-after success.

source: Business Week, Korea Times via Android Authority 1, 2

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76 Comments

1. Carlitos

Posts: 663; Member since: Oct 23, 2011

I hope the Galaxy Note 4 sells well. It is honestly the only phablet worth getting, and Samsung has been the only player to actually improve a revolutionize the phablet market.

27. appleDOESNT.com

Posts: 456; Member since: Nov 19, 2011

Gee really Samsung? Maybe you should of thought of this when you announced on Sept 3rd (and launching Oct 17th? lol horrible gameplan) and totally knowing what you were up against Sept 9th then 19th makes it even worse. How about this? >Announce and launch same day, do something amazing like that, that def would stop the iPone bleeding, maybe next time sammy, maybe next time

43. sgodsell

Posts: 7187; Member since: Mar 16, 2013

Considering the iPhone 6 plus is bigger then a Note 3/4. But the Note devices have a larger, and better display then the iPhone 6 plus. Not to mention the Note's have a pen, and a number of sensors and features that the iPhone's do not have. Plus the Note's have better multi-tasking, and multi-window. Something that is still lacking in iOS.

45. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

You know what sucks broseph? Admitting that other people doesn't have the same preference as you do. Galaxy notes is not for everyone and it's the same with iPhones. Buy whatever you prefer and let others do the same with their hard earned money.

59. Garmac

Posts: 21; Member since: Jan 10, 2014

Well said!

60. Garmac

Posts: 21; Member since: Jan 10, 2014

Can't reply to sub posts...

67. stealthd unregistered

Note 4's display is not better.http://www.displaymate.com/iPhone6_ShootOut.htm 6+ has the best display on a phone at the moment. And yeah Note 4 has more features. . . that no one wants. Samsung likes their bloatware.

68. MarqBland

Posts: 15; Member since: Sep 28, 2012

iPhone's display was listed as the best current LCD screen. The Note 4's was as the best overall (lcd or oled).

52. ojdidit84

Posts: 462; Member since: Jul 16, 2011

My thoughts exactly. This whole announce the phone 1.5 months before release is silly. The could at least follow suit with Apple and release the phone 1-2 weeks after announcement. Their shareholders are probably not pleased with the phone being announced before their biggest competitor and it's still not out after their biggest competitor has already announced (1 week after) and released their phones already. Same thing with the Alpha. Announced in August and came out in September after the iPhone that it was supposed to compete with. Terrible release strategy.

61. AlikMalix unregistered

Whether you're an apple troll or android troll there's no doubt apple products are a threat to Android - that's the reason Samsung and many others staged that android phone show off (forgot what it's called) right before apples iphone announcement, even if their phones were/are not ready to launch. Trying to one up apple didn't work apparently- apple still sold millions. Samsung and a few others should stop rushing their products to market - take a little time to polish it. Apple rushed their Maps and look what happened (it worked great in my area but not in some others) at least apple was forced to rush - Google was going to make iOS users pay for step by step directions. But no excuse - Samsung - this rush with your products and even some other manufacturers are the reason some have to root their phones to repair the OS from lag, and useless software.

32. greenelektron

Posts: 537; Member since: Sep 10, 2014

I Got turned off with samsung wwith their strategy when they attack/counter attack Apple. I love some of their hardware though specially the note series. They should have immediately sold sgn4 right after the announcement.

62. KingDingaLing

Posts: 324; Member since: Oct 11, 2013

Agreed. Pretty sure I made the same statement last week and got bashed. Oh well.

53. Leo_MC

Posts: 7190; Member since: Dec 02, 2011

No phablet is woth getting.

54. Liveitup

Posts: 1798; Member since: Jan 07, 2014

I wouldn't say its the only tablet worth getting. Lumia 1530, 6 plus, Note 3 are great as well

55. Leo_MC

Posts: 7190; Member since: Dec 02, 2011

They are too small. A usefull tablet has over 10-12".

58. InspectorGadget80 unregistered

Galaxy NOTE 4. then next Spring will be the debut of the GALAXY S V. It's bout QUALITY not QUANITY. Samsung still the only company that can take on Apple in marketing compaign. The NOTE SERIES is Samsung's best flagship ever made with it's built in stylist pen

64. DnB925Art

Posts: 1167; Member since: May 23, 2013

You mean the S6 (or S VI)? S V = S5 (V is 5 in Roman numerals)

2. LeBrownJames

Posts: 201; Member since: Mar 17, 2014

IMO, Samsung should stop focusing on Iphone. The real problem is in the mid and low end phones which are crowded by cheap but powerful Chinese brands.

16. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Doesn't matter what ads they do, this kind sort of defeat that only serve to better the tech for consumers. They will either sink or swim now and I'm betting on swim. This is the best part of the android ecosystem, corporate profits aren't the only benefit we get.

23. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Swim with Apple broski. Don't get left behind.

47. sgodsell

Posts: 7187; Member since: Mar 16, 2013

Samsung has been focusing in all markets. From the low end, mid, and high end. They have more products then any other OEM. Samsung has 31 phones released for this year alone. That's just their phones. Samsung's market share grew everywhere, except for the two largest markets, China and India which they fell to number #2. Considering Apple CANNOT compete in the global market. That's why Apple's market share is only 11.7% globally. So who needs to swim more? Apple or Samsung.

48. hitmantb

Posts: 79; Member since: Jul 26, 2012

Apple doesn't care about low end of the market. Apple captures 87% of the profit, Samsung you can split the left over with budget devices against Chinese vendors. http://www.businessinsider.com/apple-smartphone-profit-share-2014-2

50. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Gee..I don't know. Is this article about Apple or Samsung? Whose shares are declining? Did you even read the article brosephine?

56. Liveitup

Posts: 1798; Member since: Jan 07, 2014

This is a reflection of how markets are is not always a reflection of the product as the majority of people seem to think, various issue dictates how well a company's products sells. The only true reflection of the quality of a product lies the the consumer surveys and feedbacks. If Samsung made up 90% of Androids market share overall Android would fall.

3. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Karma? Stop giving Apple free press in all of your commercials Samsung.

12. tedkord

Posts: 17302; Member since: Jun 17, 2009

Maybe they will when Apple stops giving them free press through lawsuits.

15. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

2012 called. It wants its Apple vs Samsung lawsuit news.

39. SellPhones82

Posts: 569; Member since: Dec 11, 2008

Round Two - 2014 This one involved different devices and patents that were not included in the 2012 lawsuit. Apple wanted $119.6 Mill this time around. "In the second trial, the jury found Samsung violated two iPhone patents, including the slide-to-unlock feature, while Koh sided with Apple before trial on a third patent for its auto-word-correct technology." http://www.engadget.com/2014/05/02/apple-vs-samsung-trial-verdict/ You must be stuck in 2012 too, just like Apple! You guys make a great couple!

42. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Man landed on the moon.

69. MEeee

Posts: 412; Member since: Oct 19, 2011

iFans always have short memories of bad things about Apple.

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