Samsung's shotgun approach to selling phones fails in Q2
- FreezeGame
- rM3
- 10 Jul 2014
AnonD-129806, 10 Jul 2014Your obssessed ,,its a piece of electronics.The way you spe... moreAre you slow or something? Do you not realize that you are referring to a news article's quote which was written by someone else? The source link is at the end of the post for God's sake.
Pay attention to what you read before you comment. You even used OCD out of context. And if you don't care so much, why comment? To start drama?
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- AnonD-129806
- nFq
- 10 Jul 2014
FreezeGame, 10 Jul 2014II. What's Bad for the Goose is Bad for the Gander: What Ou... moreYour obssessed ,,its a piece of electronics.The way you speak you give everyone the impression you got severe OCD in your comments..If Apple go bankrupt or Nokia make comeback with 10 billion profits who cares its not going to affect anyones life on GSMArena site is it.
- FreezeGame
- rM3
- 10 Jul 2014
II. What's Bad for the Goose is Bad for the Gander: What Outlook Says About Apple
For those Apple fans that might grin at Samsung's misfortune, the outlook carries troubling signs for its competitor as well. Samsung writes:
"The weak demand for smartphones also affected the System LSI and the display businesses that provide key components, which led to decrease in shipments and lower than expected profitability."
Apple has long been Samsung's largest semiconductor business client. While it has tried to move away from Samsung's DRAM and NAND amid the pair's legal spat, Apple continues to largely source its processors to Samsung. Estimates from 2012 value the pair's mutual business at $8-12B USD. Estimates of the payments for system-on-a-chip (SoC) processors vary greatly. A research note by Hong Kong, China-based Sanford Bernstein analyst Mark Newman claimed $5B USD in total SoC business, while IC Insights suggested just under $3B USD in mutual SoC business.
More recent estimates indicate that roughly 80 percent of the SoCs Samsung manufacturers go to Apple, which pays between $10 and $15 USD per chip. And SoC business is on the rise, according to some. Despite Apple's hopes of sourcing production to rival foundry Taiwan Semiconductor Manufacturing Comp., Ltd. (TPE:2330) (TSMC), Samsung remains Apple's most cost-effective solution for SoC production. IC Insights estimates that shipments grew from $2.962B USD in 2012 to $3.413B USD in 2013.
In some ways Apple has actually grown more reliant on Samsung. Samsung now supplies an estimated 60 percent of 9.7 inch so-called "Retina Displays" (2048x1536 pixels), shipping 5.2 million units in Q1 2014 according to DisplaySearch (via ZDNet Korea). As that display size is virtually exclusive to the iPad, this would indicate Samsung is Apple's top supplier for the display found in recent iPad models.
Samsung's chief rival in this class is another South Korean firm -- LG Display Comp., Ltd. (KRX:034220). But LG Display has recently been struggling to keep up with the bargain that Samsung Electronics is able to offer. In Q1 Samsung earned an estimated $385M USD from selling Retina Displays to Apple. Together, Apple's SoC and display orders -- along with smaller orders for NAND and DRAM -- could be worth an estimated $1.5-2.5B USD per quarter for Samsung.
In Q2 2013 the semiconductor unit accounted for 8.68T Won (~$8.6B USD) of Samsung Electronics' total revenue, while the display unit accounted for 8.18T Won (~$8.1B USD). Excluding the 5.7T Won ($5.6B USD) in memory revenue, Apple orders may have accounted for up to a quarter of Samsung's total Display panel, SoC, and IC orders.
That strong link means that Samsung's warning of a "decrease in shipments" in the "System LSI and the display businesses" hints at iPad sales sliding further after dipping 16 percent on a year-to-year basis in calendar Q1 2014 (Apple's fiscal Q2 2014). It could also hint that iPhone growth -- 17 percent from Q1 2013 to Q1 2014 -- could have stalled or even followed the iPad in its reversal.
Also bad news for the iPad is Samsung's note that the market shifted away from tablets, towards large smartphones (which Apple doesn't have -- yet). Samsung wrote:
"The demand for 5-to-6 inch smartphones also cannibalized the demand for 7-to-8 inch tablets."
Nothing is certain, but either way, the nature of Samsung's guidance warning seems to clearly indicate a warning to not have overly high expectations for Apple's earnings either.
Source:
http://www.dailytech.com/Samsung+Sales+Profit+Drops+in+Q2+Apple+Sees+Troubling+Signs+Too/article36181.htm
[/end news]
Just an FYI for you Apple fans. It seems that Apple's survival largely depends on Samsung and how well it does. Basically, Samsung makes or breaks Apple.
FG
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- AnonD-209094
- vaN
- 10 Jul 2014
FreezeGame, 10 Jul 2014"$51.5 billion in revenue, and $7.1 billion in operati... moreDeclining profit in a growing market is good in what way you said?
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- AnonD-209094
- vaN
- 10 Jul 2014
The Chinese buyers are really smart, good. In Hong Kong even better, i just came from there, Samsung is rare, mostly the ones with Samsungs are tourists and workers from other countries except those from China mainland who uses Chinese phones of course, and the Hong Kong citizens are almost exclusively on iPhone, and you rarely see them with a Windows laptop, i saw mostly Macbook Pro. Very bright people and pretty girls too.
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- AnonD-152462
- ut}
- 10 Jul 2014
AnonD-179696, 09 Jul 2014Samsung is electronic giant , not like your nokia crap (old... moreI could smash your Samsung with my Nokia and the best part would be that my Nokia would still be working :D
- FreezeGame
- rM3
- 10 Jul 2014
"$51.5 billion in revenue, and $7.1 billion in operating profit in Q2"
No matter how you slice it, that's a major profit. As the article clearly states, "These are great numbers." Not as high as last year, but great numbers.
End of story. Lol.
S5 Prime/Note 4...consumers are waiting.
FG
- ?
- Anonymous
- IaH
- 10 Jul 2014
django, 09 Jul 2014Samsung had its day and they r still damn good in time to m... moreI am not supporting Apple as I am not using iphone. However, I have to admit iPhone 6 will be selling super well. Apple profit still going up, even though slower now, unlike samsung which is drastically dropping each quarter
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- Anonymous
- IaH
- 10 Jul 2014
fanboys are coming out with all kind of justifications why samsung quarter profit drops drastically.
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- Odin
- 0VT
- 10 Jul 2014
NO FM radio!!! 1/3 buys Sony, HTC, LG
- FreezeGame
- rM3
- 10 Jul 2014
django, 09 Jul 2014cheerleading continues..
FGHate it or love it, my replies are genuine. #Facts
It hurts your little feelings, and that's why you look for, read and respond to my comments. It's okay though, Jamie. You can't dance around the truth like you did on the horse at the end of the film.
FG
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- Loubielou
- gA9
- 10 Jul 2014
Nokia was Popular because of them offering Regular Updates for there phones,but Symbian let them down,Why can"t Samsung with Android offer Regular updates to make there phones Stand out from the Rest,then there sales would get better,Why?haven"t we got the 4.4.4 update from Samsung already to show they are offering better support for there phones
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- MaxSmarties
- s0p
- 09 Jul 2014
Anonymous, 09 Jul 2014Not sure if troll or comolete mentally challanged, design ?... moreIndeed .... A lot of 64 bit Android devices out there ... Err, not
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- MaxSmarties
- s0p
- 09 Jul 2014
Ritzie, 09 Jul 2014I think another reason of the downfall is when they started... moreWhat happened to Apple? They still produce the best selling phone ...
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- AnonD-276772
- uvT
- 09 Jul 2014
region lock for samsung worst idea.remove region lock
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- Anonymous
- GYB
- 09 Jul 2014
Hopefully consumers now understand what they want in a device and aren't too easily manipulated by advertising.
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- django
- XNa
- 09 Jul 2014
FreezeGame, 09 Jul 2014"The company's Q2 2014 earnings projections reflect a ... morecheerleading continues..
FG
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- Jani
- niG
- 09 Jul 2014
Wake up,Samsung!!!. Samsung Galaxy S5,bad design!!. Samsung Galaxy S2 and new Samsung Z (: Tizen ) model design are much more...i like!. ;)
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- AnonD-226352
- U{d
- 09 Jul 2014
Samsung should understand the importance of low end devices with fair market prices.
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- AnonD-179696
- 7j}
- 09 Jul 2014
Anonymous, 09 Jul 2014Muahahaha Xiaomi killed Samsung, i am one of the contribu... moreSamsung is electronic giant , not like your nokia crap (old napkin maker) .