Samsung loses ground in Q2 compared to a year ago

30 July, 2014
IDC's Q2 numbers for smartphone shipments are out - Samsung still leads but takes a pay cut.

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  • Ronny
  • DBA
  • 11 Sep 2014

Anonymous, 31 Jul 2014Apple iphone 5s has production cost just $199 and why retai... moreHonestly, you never make a good businessman. I guess you may not understand other costs that are involved (e.g. operating cost, marketing and etc) for the manufacturers.

You don't realise that Xiaomi had to do a lot of cost cutting measures to sell their devices cheap. One example: Can you find Xiaomi stores across your country? Try to think why.

Indian phones? Please don't consider re-badged, relabelled smartphones from China are made in India. It's embarrassing. :)

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    • Eric
    • Ibx
    • 31 Jul 2014

    Anonymous, 30 Jul 2014LG always included on the top-5Hopefully, lg will still in top 10 two years from. However, it does not look good. What lg need to do is to sell the phone division while it is still worth something. Hurry up.

      • d
      • django
      • XNa
      • 31 Jul 2014

      FreezeGame, 31 Jul 2014My fellow Samsung fans, look around. We're surrounded by in... moreAre you getting paid by Samsung ?

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        • Anonymous
        • ttv
        • 31 Jul 2014

        Apple iphone 5s has production cost just $199 and why retail price is $999?. Galaxy s5 has $255 production cost but why $699 in the market ? It is clear that only Xiaomi is honestly doing business and other Chinese and Indians phones are serving well. Apple is king of cheater and Samsung is follower of apple. We should be careful when buying smartphones.

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          • paulmurza
          • ny7
          • 31 Jul 2014

          FreezeGame, 31 Jul 2014My fellow Samsung fans, look around. We're surrounded by in... moreI really hope that you have a job that focuses on mobile phones cause in other case, you really don't have a job man.

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            • AnonD-77464
            • naq
            • 31 Jul 2014

            FreezeGame, 31 Jul 2014My fellow Samsung fans, look around. We're surrounded by in... moreSlowly starts clapping...
            That, folks, is a very well thought analysis. Please don't start replying to it, without thinking first.

              • ?
              • Anonymous
              • LgR
              • 31 Jul 2014

              FreezeGame, 30 Jul 2014While I do like the Mi 3/4, Xiaomi is 10+ years away from b... moreXiaomi sold 26 million smartphone in the first half of the year. Even if we assume an almost equal distribution between quarter 1 and quarter 2 of 12-14, this still means that they have sold about as much as LG so at about number 5 in the world.

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                • AnonD-252557
                • 4Je
                • 31 Jul 2014

                FreezeGame, 31 Jul 2014My fellow Samsung fans, look around. We're surrounded by in... moreNice breakdown. +1 for always knowing your stuff. Samsung is one of my favorites as well. I'm sure things are going to work out.

                  My fellow Samsung fans, look around. We're surrounded by individuals who are green with envy. We continuously read comments like, "Good, it's about time!" and "That's what Samsung gets for using plastic!". Fret not, as the evidence is right in front of us. Samsung is the only company in the list that can be considered a juggernaught. Even when losing ground in a projected sense, Samsung still isn't close to be dethroned. And the truth of the matter is that they never will be. As long as Samsung is in the Smartphone business, they will be number one.

                  Those who are anti-Samsung will say, "People said the same thing about Nokia."

                  Newsflash! Nokia was only a champion in the smartphone business when it didn't have any real competition. Its Symbian OS devices were remarkable for the time, but clearly didn't hold up. As soon as new players hit the market, consumers couldn't wait to leave. Nokia's decline was inevitable.

                  Samsung, on the other hand, transitioned to smartphones while well established champions were already fixtures on the market and took it from them. Lets see how this happened.

                  In 2007, Apple released its iPhone. It started to take market share away from Nokia. As the two top smartphone manufacturers, they solely battled each other for around 2 years. No mobile manufacturers or mobile OS's on the market could touch them. However, RIM started to make its presence felt in 2007 as well. Over just two years, RIM enjoyed a rapid growth. Blackberry OS devices were a major competitor in many markets, making it a three way fight. Samsung wasn't even a smartphone contender in 2007, having only a few Windows Mobile 6 and Symbian smartphones on the market, but nothing to truly compete against Nokia, iPhone, or Blackberry. Feature phones were coming to an end, and the smartphone era was at the forefront.

                  A year before the iPhone, and even during Apple's rise to the top, a relatively unknown smartphone manufacturer was making a name for itself. They were truly "Quietly Brilliant." It was none other than HTC. Using Windows Mobile exclusively, and eventually skinning the mobile OS with its own TouchFLO/TouchFLO 3D UI, HTC gave consumers a better experience over stock. A resistive touchscreen had never felt so good. A little over a year after Apple's initial release of the iPhone, HTC announced the very first Android device, the HTC Dream. It was first released as the T-Mobile G1 in Fall 2008. Android was officially on the market, and ready to play.

                  At that same time in 2008, Samsung still wasn't a mobile threat. It wouldn't be until two years after iPhone that Samsung released its first Android device, the Samsung Galaxy (GT-I7500) in 2009. Many feature phones and a few Windows Mobile 6 devices later, 2010 was the year that Samsung truly committed to Android. That year, it released several Android smartphones, as well as a few Android tablets. By the end of 2011, only two years after the original Galaxy, Samsung topped Apple to become the world’s No. 1 smartphone manufacturer.

                  A year earlier, the most popular smartphone OS on a worldwide average at the time (Symbian), was overtaken by Android.

                  That being said, in all fairness, Samsung did give everyone a chance to make an impact. When it was obvious that no one was going to innovate and push smartphone technology further, Samsung took the reins, earned and solidified its position.

                  The small projected declines that Samsung is experiencing in 2014 aren't remotely close to what happened to Nokia.

                  BTW, Apple and LG lost ground in market share as well. This is after both companies had profitable 2014 quarters thus far.

                  FG

                    • ?
                    • Anonymous
                    • 0BM
                    • 30 Jul 2014

                    Z, 30 Jul 2014Samsung's 1/3 of revenue comes from smartphone business . ... moreGoogle. Sadly. :(

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                      • Anonymous
                      • wY8
                      • 30 Jul 2014

                      LG always included on the top-5

                        • ?
                        • Anonymous
                        • nCh
                        • 30 Jul 2014

                        Anonymous, 30 Jul 2014Six Billion in profits is not exactly what I would consider... moreWhile Samsung is not in immediate danger, it suffered a huge drop of 25% in profit, and also declined in sales also in a significant way. What makes this especially ominous is that other companies did not follow suit.

                        Apple, LG, HTC, and other major players all reported INCREASES in sales.

                        When most companies report similar drops, one can blame the market. However, when only one company drops, while others are doing well, then concern must go to that company.

                        Samsung is not in immediate danger, but if things continue moving the way they do, then its smartphone business will hit danger signs before too long unless they can do something about it.

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                          • Banhday
                          • uj9
                          • 30 Jul 2014

                          Ugly cheap plastic design will pay off.

                            • D
                            • AnonD-235514
                            • Cee
                            • 30 Jul 2014

                            About time Samsung need to streamline their bloated touchwiz. Imagine if samsung just use vanilla android on a Galaxy Note line, and make their software optional. it will sell like a hot cake.

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                              • AnonD-8044
                              • an1
                              • 30 Jul 2014

                              Gibby, 30 Jul 2014More competition means more diversity and innovation all ro... moreYep full agree.

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                                • Anonymous
                                • 4SS
                                • 30 Jul 2014

                                Cheers! A lesson for Samsung,

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                                  • Gibby
                                  • Ixj
                                  • 30 Jul 2014

                                  More competition means more diversity and innovation all round :)
                                  This is good news for everyone! :))

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                                    • AnonD-1825
                                    • mhP
                                    • 30 Jul 2014

                                    Anonymous, 30 Jul 2014Six Billion in profits is not exactly what I would consider... more"The same thing happened to Apple "profits fell" with the iPhone 5S, most people with the iPhone 5 had no reason to upgrade"

                                    Except iPhone 5S is Apple's fastest selling phone. You forgot iPhone 4S/4/3GS owners...

                                    By the way over 55% of samsung money comes from mobile division, so yes if their mobile division doesnt do well, they overall doesnt do that well.

                                      • Z
                                      • Z
                                      • K2F
                                      • 30 Jul 2014

                                      Anonymous, 30 Jul 2014Six Billion in profits is not exactly what I would consider... moreSamsung's 1/3 of revenue comes from smartphone business .
                                      No company rules forever .
                                      We have seen Nokia to fall .

                                        • ?
                                        • Anonymous
                                        • Im4
                                        • 30 Jul 2014

                                        Anonymous, 30 Jul 2014Falling profits, falling shipments, and falling market shar... moreSix Billion in profits is not exactly what I would consider a company in trouble, and that is only from their phone division, as some of you might not know, Samsung is not only a phone manufacturer. Also the phone market is completely saturated, and people are upgrading less and less "except the gadget geeks, who upgrade from one phone to the next because the new phone runs 5-10% faster", especially with todays economy. The same thing happened to Apple "profits fell" with the iPhone 5S, most people with the iPhone 5 had no reason to upgrade "except of course the gadget geeks", and still haven't.