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Samsung's second quarter earnings forecast sees a 24 percent decline in profit from the same period last year, which is mainly attributed to a waning interest in the smartphone market.

Samsung expects to bring in a profit of 7.2 trillion won ($7.1bn) on sales of 52.0 trillion Korean won, which falls short of analyst expectations of an 8.1 trillion won ($8 billion) profit. The South Korean vendor cited increased competition in entry-level and mid-range segments in China and Europe as a reason for the decline in sales.

Samsung also stated that the proliferation of 4G LTE services in countries like China saw a decline in 3G products as consumers were holding out for LTE-enabled handsets. Similarly, the rise of the 5- and 6-inch phablets have cannibalized sales of 7- and 8-inch tablets.

Also, the saturation of the smartphone market meant that Samsung had to spend more toward marketing and advertising than it usually does. The declining interest has also adversely affected Samsung's manufacturing units like Samsung Display and System LSI.

Furthermore, the steady increase of the Korean won, which increased by 11 percent against the US dollar, has dampened Samsung's profit margins. The manufacturer has said that it "cautiously expects a more positive outlook in the third quarter," which will likely see the launch of a new Galaxy Note smartphone along with other devices.

In addition to smartphones, Samsung is focusing its attention on wearable devices and the connected home segment to drive future growth.

Source: Samsung

 
There are 156 comments

HTC up Samsung down

Posted via HTC ONE M8 Gunmetal Gray

BoB16731 says:

It's really Samsung fault

Posted via Android Central App

Bigger screen every year and more MPixels and cpu ghz is nothing if ur not blind fan

Posted via HTC ONE M8 Gunmetal Gray

That statement really makes no sense. Better means nothing? I think you're trying a bit too hard with your trolling today.

Dizfunctions says:

I think he means that simply increasing specs doesn't make for a better user experience.

Posted via Android Central App

It does. The megapixels of a camera, screen density and the CPU are pretty much small factors that people tend to look much too closely at. Screen density against most phones now adays are competing against figures that just don't matter and the latest OS releases have made slower CPUs shine just as much as the newer faster ones.

People should be focusing on their current needs and benefits of what they want from a phone, not specs such as mentioned.

1+

Posted via HTC ONE M8 Gunmetal Gray

azsdfsd says:

How much profit did HTC earn compared to samsung? HTC is not out of the woods yet especially the next quarters

toukale says:

HTC profit was by some accounting tricks, they sold less phones and made less money. They made a profit because of cost cutting. How long/low you think they can keep cutting?

SJorge3442 says:

Yeah? Please tell how they "cut costs". It sure as Hell wasn't anything related to quality. Pretty sure they increased their marketing budget 10 fold the last 6 months.

toukale says:

i must have missed the part where they reported selling less phones and brought in less income. Here is the real truth about that, their missed their own estimates for crying out loud, and only managed $34 million in profits because of cost cutting a figure apple makes in less than 1 hour. Yes, they are doing great, they are setting the smarphone world on fire as we speak /S. http://www.bloomberg.com/news/2014-07-03/htc-profit-beats-estimates-on-s...

mwara244 says:

They lost a bunch of executives which saves them money in the long run and they also had to let go a few hundred employees. It takes a quarter or two to see the impact of that. Last month or quarter was the first quarter they turned a profit in over a year, and it was meager millions.

BB_Bmore says:

+1

Sent from an HTC or Nexus. Hopefully one day soon, an HTC Nexus super tablet.

barondebxl says:

I think samsung made more profit this quarter than HTC the past 2-3 years. HTC is a joke.

carraser891 says:

yea but Samsung makes a lot more money overall even being down 24 percent year over year

Posted via Android Central App

mwara244 says:

They have to hit a wall sometime, they got in the android smart phone game in the beginning and improved year over year because the market expanded. The market has a Tangible size and ceiling. After a while it's not about increases but keeping up the status quo without major losses. If they can sell 30-60 million phones a year, just phones, year over year, that's still a profitable win.

udazavlanje says:

From the rock bottom (financial) HTC can only go up.
And from the biggest share in the industry and 50 devices a year of course you gotta go down.
Definitely not worried for Samsung.

Posted via Android Central App

D13H4RD2L1V3 says:

Maybe it's about time Samsung launches something new and radical.

Incremental updates are not good in the long run.

They must change alot improve UI change camera not just bangging MP alot alot design screen
Posted via HTC ONE M8 Gunmetal Gray

You seem to be a HTC guy, I think you should be more concerned about the horrible cameras in HTC phones. Big pixels are pointless if their quality is poor.

ErnstMach says:

I think you should be more focused on contributing to conversation than following this HTC fan around

Posted via Android Central App

Didn't I contribute? Am I not allowed to question a person who clearly is hell-bent on trolling?

Wow, you found a never-herd of site where the camera in the HTC One might not be lambasted for poor everyday usage quality? Good for you. :)

The M8 looks like it takes pictures more accurate to what the eye would be seeing. Thats it

patstar5 says:

It does take great pictures, quality could be a bit better. Well I had s4 and this m8 feels so much better in hand! Never buy samsung product again!

Posted via Android Central App

BoB16731 says:

I'll take my note 3 camera over the m8 camera anyday

Posted via Android Central App

twatts723 says:

+1

+1

Sent from my Samsung Galaxy Note 3 on T-Mobile via Android Central App

D13H4RD2L1V3 says:

Unless HTC steps up it's camera quality for the M9, it's the Z2's camera or the S5's for me.

+1

Posted via Android Central App

Eric Graham2 says:

I think HTC has the best cameras out TBH.

BoB16731 says:

LoL

Posted via Android Central App

Vipe says:

not really, look up the comparison of the lg g3 cam and the m8 cam. the m8 pics are just ugly

Eric Graham2 says:

My friend has an m7 so yeah I know all about it. Sure if you want to be a photographer it's not the best but the way phones are not in optimal lighting it blows the competition up. I love their cameras.

BoB16731 says:

Had the m7 my note 3 camera destroys it

Posted via Android Central App

Razieltov says:

Actually the quality of the camera on the HTC ONE is quite good. I am an HTC fanboy for sure. But not a blind one. I do like and respect Samsung phones too. I just prefer HTC over Samsung. But if someone were to ask me what was wrong with the Samsung phones I would say there was nothing wrong with them at all and then explain their benefits. But still the camera on the HTC is quite nice.

xlDeMoNiClx says:

Finally an HTC fan who knows what he's talking about.

Posted via Android Central App

@Hans Pedersen Why do you have to keep going on about HTC? the fact of the matter is that Kitkat on Samsung devices looks a lot like Gingerbread did. Touchwiz has not really evolved and its become quite stale. If the headline was HTC and Samsung profits plummet i could understand you bringing HTC up in every post, but it doesnt and you`re coming off as a Samsung nuthugger.

And as to this guy supposedly trolling, what did he say that was trolling exactly? You disagree so therefore it`s trolling.... This is a prime example of trolling "You seem to be a HTC guy, I think you should be more concerned about the horrible cameras in HTC phones. Big pixels are pointless if their quality is poor.". Absolutely zero input whatsoever

bigdav1178 says:

It's not new, and it's not exactly radical, but I'm still waiting for someone to bring back the physical keyboard. It would differentiate itself from all the slab phones out there. Yeah, perhaps it's a niche market, but with no other competitors in it, I think an OEM could do well with it. Now, I'm talking about a flagship-spec'd phone with a keyboard, not something they threw their leftover components from last year into; we've already seen how well qwerty's sell when they have trash specs.

Impulses says:

I thought weather resistance on a flagship model was a pretty radical move, specially when they still retained the swappable battery... Didn't move me to upgrade as I don't crave the WR or removable battery, but they're definitely things I wouldn't mind having in 6-12 months when I upgrade my Nexus 5.

I think most of Samsung's software features are straight up gimmicks, but by the same token I think a lot of HTC's hardware is pretty gimmicky too and that's a far more costly mistake for a company. I get that they're trying to differentiate, but frankly I won't buy a phone just cause of it's Al body nor cause of a second camera that produces a poor DoF effect.

Even Boomsound is kinda meh IMHO, yeah it's louder than any other phone, but it also makes the phone disproportionately larger and if I'm gonna spend more than 5 min listening to something on a phone I'll grab headphones or connect to something thru BT/Wi-Fi. Not like Boomsound creates true stereo imaging...

Habiib says:

BoomSound isn't about being just louder. BoomSound produces better sound quality for external audio than its competitors.

I'm glad you mentioned headphones, since the headphone output quality of the M8 is best in class. I couldn't imagine listening to audio through headphones on any other smartphone after seeing what the M8 can do.

Posted via Android Central App

Try a Xperia and then try to go back to HTC's sound.

Posted via a Sony Z1

Habib +1
Posted via HTC ONE M8 Gunmetal Gray

bed269 says:

The smartphone market is going the way of the PC. There now isn't a big enough upgrade or change in devices to justify an upgrade.
Since most phones will basically all do the same thing price will become a lot bigger factor in deciding what people will buy.

Posted via Android Central App

toukale says:

Imagine all the "doomed" comments if this were apple. If samsung is having problem now the quarter their launched their flagship gs5, then they are in a world of trouble once the bigger iphones land on the high ends. They are being squeezed by apple on the high end and all the chinese oem's on the low end.

avenging says:

you're the one who keeps mentioning apple here when they have nothing to do with it, what's your agenda?

so if the iphone goes bigger they are copying samsung then

toukale says:

I am sure they are roll eyes that's why they are in trouble.

avenging says:

iphone going bigger = copying samsung strategy

theShiz says:

They might as well, every "new " thing they do lately is old on Android.

Posted via Ash William's Boomstick

Razieltov says:

ok I have to troll this comment. Only because it is funny. An iFanboy would say that Apple was the first company to go bigger. They made the iPad. Samsung copied they iPad and made a bigger phone. So really Apple as always was first and better. lol.

D13H4RD2L1V3 says:

Since when did Apple create something awe-inspiring since the iPhone 4?

Oh, yeah, the iPhone 6 will have a bigger screen...

Oh wait. Androids have it for a long time already.

ysbg says:

Don't forget there is still a very large market to conquer - the developing world.

Google is clearly putting a lot of focus on that, first with kit kat and the moto e, and now with the Android one program.

Posted via Android Central App

NoNexus says:

or the 10,000 low end Samsung phones they release every week.

I'm not upgrading till there's something important, UHD/64 bit/Tango/Ara, my Samsung Nexus 10, QHD tablet cost $300.

h0ruza#AC says:

They have the ability to wow the world but none of the wisdom needed to realise it.

By the time the figure out that a million unwanted features and a bigger form factor won't automatically win brand loyalty some other OEM using close to stock android and great hardware will have superseded them...

...and not necessarily HTC

I don't think brand loyalty is the issue here. It's the lack of growth, which is inevitable as there are only so many people on the planet, and not all can afford (or are willing to pay for) a $6-700 smartphone...

toukale says:

LOL "They have to ability to wow the world," How are they going to do that when they depends on either google or microsoft for their software. Samsung have always been a great hardware oem nothing more. They capitalized on the apple opportunity when apple turned to them for help in building the hardware for the iphone. When google decided to changed from cloning bb to cloning the iphone, they benefited again by that opportunity. They capitalized on their opportunities and spent a boatload on marketing and promotions. Now that the market is saturated they need to be innovative and that is not their strong suit. Between iphone on the high end and all the chinese oem's on the low end, 2015 will be a long year for them, and I will be seating here with my bucket of popcorn to watch how it all unfolds.

h0ruza#AC says:

To grasp my point you have to look at Samsung's manufacturing repertoire rather than what they actually produce in their smartphone line up. They have come from nowhere to supersede the likes of Sony and at the drop of a hat can output hardware like the 'Gear Live' which lets face it wasn't a direction they were heading in.
I for one will never over look their ability to produce any hardware they set their sights on producing.

Google has been taking a very forward thinking stance with android for a while now and the OEM that embraces that and focusses on the hardware rather than fool themselves into thinking they are UI experts or software innovators will find their products gain market share rather than the opposite.
Motorola is a prime example as they have a fraction of the bandwidth for hardware production in comparison to Samsung yet by focusing on the platform rather than Zoe's and S Health they are selling phones with inexpensive components . Image if Samsung (Just for a moment) quit trying to be apple and followed Motorola but with bleeding edge components including curved screens (especially around all the edges of the phone).

That was my point!

I mentioned Brand loyalty because the GS2 earned consumers trust with its speed and vibrant screen. It really was the first true iPhone contender and the GS3 added to that but the GS4 and GS5 are so irritative that the momentum is lost which was evident last year.

toukale says:

Here is the problem with your argument, there is no money in what moto is doing.The thing google is doing with android is good for google but no one else. Google is trying push down the cost of hardware to zero, if and when that happens, how are the hardware oem's going to make money when the only place they can is control by google, which is the services and ecosystem.

With android one, google is trying once again to control the low end and my question is the same, where do the hardware oem's make their money if they have to sell at or below cost. That's why android will continue to fragments and we will see many forks of android and appstores in the future because that's the only place they will be able to make any money. Again, android is great for google but how does that help their partners to make money when they are selling at cost or below cost. That's a problem google does not seem to care about since it does not affect them directly. If I am a hardware oem and I see how google is trying to push hardware cost to zero while I don't have any other way to make money then I have to question if google is really a good partner that have my interest in mind.

Facing a situation like this will force a lot of oem's to take matters into their own hands and fork android and try to add their own services on top to make up for the cost of zero $ hardware. It's been working wonderfully in china where google services is basically non-existent. Look for other regions to try to adopt the same solution and if that strategy ever take holds outside of China then google will have a lot more to worry about.

There is really no brand royalty on android, there is however a loyalty to google services in the US and Europe. Most people on android have a loyalty on price, which is whomever is selling the cheapest hardware at the time will get the sale as long as they can access the playstore. There is a small group on android that cares about design and an even smaller group that cares about materials (ask HTC).

h0ruza#AC says:

lacklustre software development isn't having a positive affect on their sales yet it incurs a bottom line cost.

I can only imagine what they have spent on the Galaxy Gear's not to mention developing their own OS add to that the cost of coaxing customers into crappy looky likey services. At a guess I think its safe to say millions have been poured into their wearable's only for Google to refine Google Now into a viable wearable platform and instantly make their efforts look short sighted.

If they spent their efforts on further improving the cost effectiveness of production they will make more money. They are a hardware company and should play to their strengths.

toukale says:

Again, you failed to see why samsung is trying to do those things. They are only doing this to try to take matters into their own hands. Samsung right now can go away and no one will missed them since they don't control android roadmap, google does. Samsung is only trying to do what I talked about above because the chinese oem's is proving that they can compete on or below costs whereas samsung can't. Samsung problem is that they have don't nothing so far to prove they can develop and maintain a vibrant ecosystem that will allow others to thrive, nevermind their software because it's laughable at this point. All you are saying is good and well if you are a chinese oem and can or want to compete on price at present time. But for the likes of samsung, HTC, Sony and LG, it is not a rosy scenario, although it's great for google once again.

h0ruza#AC says:

Please forgive me I haven't given your point a reply. I fully understand the point you're making please don't assume that I've failed to see what Samsung is doing, its been the topic of many a Podcast and Blog post and yes in an ideal world where free fountains of honey were dotted along every street so pooh bear could have his fill and Samsung would be successful in creating a content providing platform to rival iTunes, Play Store and Amazon.

I haven't given this concept much attention beyond a sigh because the likely hood that Samsung could achieve this goal is almost non-existent. It is very obvious that Samsung is much like an envious child in a play ground wanting the lime light that the pretty boy gets (Apple) but looks like the sad kid who's tried to buy the same clothes but only got knock off copies.
Simply coping a successful business model isn't enough when your competing with driven innovators. The only reason Amazon, Google and Apple can make money in similar markets is because they have totally different goals.

Do you see Samsung becoming a content provider of worth?

I don't at all because its very unlikely given their skills sets visibly hit there limit the moment you use there phones and realise 80 percent of there innovative features are nothing more than in-cohesive, desperate attempts at being something they're not.

The likelihood of Samsung making profit from their core business given more focus is almost guaranteed. The moment they took their focus away from what they are good at the exynos processor bombed and qualcomm took top spot for almost every smart device made including the Chinese produced devices.

That's all I'm saying.

toukale says:

Completely agree with the samsung sentiment. in order for samsung not to become a shell of themselves in mobile device selling they need to expand beyond what they are now. Right now, they are repeating the same mistake all the pc oem's made where microsoft and intel made all the profits while all the oem's was barely able to make a dime in profit selling pc's.

As far a samsung making profits from their core business while that remain true for now is also not guaranteed. The tv business is not doing well and that's not likely to change anytime soon. The chip business is pretty much all Qualcomm right now, apple who is the biggest mobile chip user design their own. Their other business are doing fine, but even there the margins are shrinking. If samsung can't remain close to their current profit level, then they will need to shrink because mobile is currently providing them with their bulk of profits.

Don't get me wrong, samsung is not going away in mobile, what will happen I believe is the kind of profit/margins they have enjoyed the past 2-3 will considerably go down to where they were pre-2012. The sad part about all of this is there is not much they can do about now, they needed to prepare for this a few years ago. It would not surprise me if they buy, a dropbox or a netflix but even those will not do much to reverse the trend.

Putting a competent ecosystem together will take time and money, they have the cash, what they don't have is time. Google will be find in all of this, provided the model that works in China where they are non-existent does not venture out west.

For samsung, it's not just to become a content provider, that's just a starting point, they need the whole thing. Pretty much what happened to apple when their launched their ios maps. In 2009/10 that would have been fine, but in 2012, that was not acceptable because google maps was so much better. That's the kind of expectation samsung will have to deal with, which is what microsoft have been dealing with the past few years with their windows mobile platform, while solid, is just not good enough compare to what the competition is offering in 2014.

"... some other OEM using close to stock android ..."

Normal people simply don't care (and in most cases don't know) about "stock" Android.
The extreme minority group that visits tech blogs know what "stock" Android is and not even all of _them_ care about it.

Razieltov says:

+1

Stephan Hall says:

I disagree! Stock Android has influenced the trend toward cleaner UI's in the newer released phones. I was a Touchwiz user for some time. Now that I've experienced stock Android . . . I wont own a phone that doesn't have stock Android. I predict the trend toward a more stock experience will continue. Less is best!

Posted via Android Central App

diktea says:

Obviously simply creating out all possible phones with same design and confusing names should surely increase the production cost. Hence the unsold is plenty and thus profit bound to plummet down...

Posted via Android Central App

NoNexus says:

No.

If you use the same design over and over again, with minor variations on the internals, your production costs go down.

Habiib says:

Platform sharing done right. I have to give Samsung credit for that.

Posted via Android Central App

rampage1979 says:

It also help sales keeping the same form factor when other people all see the same looking phones in their friends/ relatives/aquintances hands even If they are many diffrent phones s3/s4/s5 makes them seem even more popular cause people want to use what they perceive is popular. I think that's why HTC/Sony/lg each have their own look and stay with it. Its one way they can gain brand awareness.

Posted via Android Central App

fightcrazy says:

They still have managed sick profits. The market is getting harder to compete with all the new Android Companies making some very descent devices especially in the Asian markets. I would gamble Samsung will come back with new devices made with better products. The new Note is around the corner which usually does fantastic. Samsung will be OK i think. Just my Opinion

I think samsung should stop focusing on mid range and low range devices. It must concentrate on the flagship and invest more of R&D on it. Bringing in multiple phones with some having 8mp, some having 5mp. Some having 1.2Ghz and some having 1.4Ghz (Just random examples) isn't gonna help samsung anymore. They should now agree on the fact that there are plethora of manufactures for low range and mid range.

avenging says:

thats the reason why they are struggling, they "neglected" the low end and mid range hence why they released the 4 new low end phones the other week. their problem is not on the flagships lol

SJorge3442 says:

You do realize all of the low and mid end phones are the top sellers, right? All of the south American countries love these phones. They don't need premium phones. Nor can they afford them. You cut the low end and you cut profits even more

bleached says:

They said the problem is low end devices are not selling. They are losing money discounting them.

Posted via Android Central App

Anonne says:

They're not selling, because they're crap.

Posted via Android Central App

D13H4RD2L1V3 says:

The Moto G and Moto E are chipping away at those sales.

Sure, they don't have eye-popping sales figures, but they've been lauded for being the best budget smartphone ever, period.

thatguy97 says:

There flagship aren't the problem they need to streamline there product line for the low to mid range and continue to support them with software updates better and not release so many low end devices so quickly

Posted from my Nexus 7 2013 running Android L or Samsung galaxy S5

Samsung is the NEW Apple

Posted via Android Central App

toukale says:

Without their own ecosystem and their own software.

NoNexus says:

Tizen and the Samsung app store would like to talk to you about that point of view....

Great news.They have become a marketing company of late while innovative companies like Sony and HTC are feeding on scraps while they deserve more.Wish I could see Richard Yarell's face now

Posted via Android Central App on Google Nexus 7 2013

avenging says:

i thirnk richard will still be happy because samsung will still make more money than sony and htc combined.

05 TypeS DC5 says:

I am sure also when people heard there was going to be a premium device it stopped some from buying. I know for me personally I don't feel like upgrading my device unless it's something spectacular. Also, like someone else said, other companies are now making better android device than before. Its really making competition harder.

The thing that will piss me off later is how they try to compare s5 to iPhone sales. Which is dumb cause there is only 1 iPhone and hundreds of android devices. The correct comparison will be total of android units sold vs total of iPhone units sold.

Posted via Android Central App

BoB16731 says:

A lot of my customers made appointments to buy the sgs5 but canceled when they found out the sgs5 prime was coming

Posted via Android Central App

bleached says:

And that turned out to not be true.

Posted via Android Central App

BoB16731 says:

Huh the Samsung galaxy for ie the prime I know htc confirmed the m8 prime was not coming

Posted via Android Central App

Samsung should bring in the curved glass display asap. Apple in 2007 didn't hold back for bringing in touch display which took a big leap in the smartphone division. It took years for others to bring in their touch devices. Similarly samsung should make a big leap. Not thinking about what will I do in the later years.. I've seen people still using S3 beacuse it was the best and I still consider it as one of the best galaxy device. If you launch a device which people wont mind using for years then why wait to launch the best one.

thatguy97 says:

LG already had one the LG Prada it didn't take years for other manufacturers

Posted from my Nexus 7 2013 running Android L or Samsung galaxy S5

BoB16731 says:

Curved pass please

Posted via Android Central App

toukale says:

Apple is doomed, doomed I say, lmfao!!!!!!!!!!!!!!!!!!!!!!!!!

avenging says:

what has apple got to do with this?

toukale says:

They are lost with no new apple products in sight to copy.

avenging says:

you mentioned apple will go bigger right? so it seems they're the one copying samsung

toukale says:

So let me get this straight, offer a bigger screen of your product is copying now. You fandroids are something else, lmfao. Just like I am sure apple should offer one size laptops too. Your can hate all your want, you will never take away what apple has done in the mobile industry. Everyone is following their course of actions set forth in 2007.

avenging says:

your overload jobs said nobody will buy big phones. so what do you say now?

You are still the most pathetic Apple employee on the internet, toukale. Spending your days on Android sites trolling about your pathetic employer.

toukale says:

Someone is butthurt by the truth, lol. Samsung have always been a good hardware oem that benefited from apple and google and spent a lot of money on marketing to position themselves as the anti-apple. They have never been a product innovative company, but a fast follower with muscles and scale. They are not going to magically create a new product or category on their own, because honestly that's not who they are.

Razieltov says:

Apple is going to go the way of Personal Computers. They pretty much invented the Personal Computer industry. But them some else bigger and better came along and demolished them. They own what? 10% of the computer industry? They are on their way down.

And yes Apple hasn't released anything new since 2007. The iPhone 5s and the original iPhone are pretty much the same thing.

toukale says:

So is everything that's been released since 2007. If you were trying to put apple in a bad light with your statement, then what does that say with everyone else in the industry that have yet to move beyond what apple introduced in 2007. The 10% apple gets is by design and willingness to focus on the high end and not compete on price or rush to the bottom. I remember Dell and HP having a bigger pc market share than apple, where are they now? same with a lot of mobile manufactures. I think someone needs a lesson in business 101.

Razieltov says:

Really so the HTC G1 is almost the exact same as the HTC ONE. The Galaxy s is the same as the S5. No. Those phone has changed quite a bit in style and functions. Although I will say that the s3, s4, s5 are pretty much the same. But Samsung saw that people are sheep and will buy anything they say is new. Its about marketing over function. That is way Apple does so well. They don't release an amazing product, they just release a new product and market it very well even though it is the exact same as its predecessor.

toukale says:

Quite a theory you have there. For the sake of argument let's take what you are saying about apple is true, that it's all about marketing which samsung btw is spending 9 times more than apple, then how do you explain their 25% drop when apple is doing fine? Also, that 25% drop is in the same quarter samsung launched their best phone line, the gs5. Last quarter the iphone grew by 17%, we have yet to hear how apple did for this quarter, but I doubt they will see a 25% drop. Everyone knows if apple saw a profit drop like this, the whole world would be asking for Tim Cook head on a stick.

Razieltov says:

But see Apple had the opportunity to be the first in the game. But not only that for about 2 or 3 years they had the best device on the market. So they were able to capture and enslave the hearts and minds of more people.

jmgnole says:

Maybe random folks didn't see that much difference in the S4 vs the S5, and simply didn't see a reason to upgrade? Not everyone lives on these sites like we do. I know that the specs are improved, but it looks quite a bit like the S4, or pretty much anything else they sell.

Razieltov says:

But a huge difference in the S3 vs the S5. Most people have contracts and have to wait 2 years for an upgrade. Plus the S5 compared to an iPhone isn't even really a comparison.

evoben24 says:

They better have plenty of galaxy fs in stock then

Posted via Android Central App

plunder says:

The strength of the Korean economy is probably a big factor here. However fewer wizmos and more truly useful features from Samsung could help.
I am a Samsung user with a Note 3, but I had to turn most of the silly "features" off. I do hope Samsung aren't to arrogant to listen to user feedback. LG DO listen and it will help them.

avenging says:

the strong korean won is affecting all korean companies not just samsung so let's see what happens

jimbo says:

LG, a Korean company, is showing significant improvement, including taking a big bite out of Samsung.

avenging says:

you have LG's Q2 earnings data already?

toukale says:

Whatever we need to tell ourselves to make us feel better about this, roll eyes.

Razieltov says:

The problem is though that if they do remove those features people will still complain. So either if they keep the features or take them out the outcome is still the same.

leafs123 says:

Samsung's problem isn't the saturation of the smartphone/tablet market. Their problem is that they make too many damn devices!

Posted via Android Central App

Anonne says:

This. Too many devices. Instead of focusing on doing a few things well, they flooded the market with different models. Phablets cannibalizing tablets is expected. Why would anyone buy a tablet when you have a phone that is basically the same thing? Are they stupid?

Having choice is good, but having too many choices from the same manufacturer is burdensome to Samsung financially and confusing to the customer. Pick a few form factors and go with it. Slightly different sizes is just too much.

Posted via Android Central App

avenging says:

yes phablets will cannibalize tablet sales but samsung benefited hugely from phablets more than they will with tablets.

D13H4RD2L1V3 says:

The strategy of flooding the market nearly killed HTC.

Just way too many devices and it can create confusion.

A streamlined product line would be best, but with the bazillions of different Galaxy phones out there, it may be confusing for the general consumer to understand which is what.

For me, there's only 2 Galaxy devices I need to know. The Galaxy S and Galaxy Note.

cybertec69 says:

People don't upgrade like they used to, most devices that are two years old still do their job just fine, plus people are on a tighter budget.

Posted via Android Central App

kcerica says:

Maybe they spent too much money on making too many different phones and tablets that many people aren't interested in.

Posted via Android Central App

bryanw504 says:

Yea we can say its because the smartphone market is saturated and that's true it's reached it's peak no doubt. But I blame Sammy for most of the saturation, they have so many phones, tablets, watches ect..... that people have no idea whether to buy now or buy later. The GS5 was suppose to be their flagship device yet there will be several other variations of the device before the year is up. Not to mention all the low budget phones to. Samsung has stretched themselves thin.

Anonne says:

Yep. They tried to be all things to all people and I think we know how that goes. Failure eventually.

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jd914 says:

The bigger they are the harder they fall.

patstar5 says:

Samsung and apple must fall! Google's project ara will obliterate non-modular smartphones.

Posted via Android Central App

Razieltov says:

No it will not. Its awesome for techies like us but for the average person they just want something that works. That is why the iPhone does so well.

jimbo says:

Where's No-it-All ?

Waning interest in smartphones? Bull. Waning interest in Samsung they mean.

Posted via Android Central App

Comments here are funny. Y'all are going to give a multi-billion dollar corporation advice on how to run its business, but y'all can't string two sentences together coherently (or even with kinda correct punctuation)? Yeah...

toukale says:

Yep, your comment is such a departure from the rest, roll eyes.

Slow clap. Who taught you how to roll your eyes so well? I'm impressed.

avenging says:

his overlord jobs taught him

jd914 says:

"y'all" That pretty much sums up.

Y'all is a contraction for you all. Nothing wrong with that. All southerners say it. It bears no reflection what-so-ever on ones intelligence.

Oh, and you missed a word in that one sentence you tried to complete.

Correct. In addition to that English is the only language largely derived from the Romance languages that does not contain a You (Plural). Example: Spanish you singular is Ud. You plural is Uds. Y'all is more grammatically correct than any other word or phrase used in modern English today to express you (plural).

cybertec69 says:

Like I said earlier, there is less and less reason for people to upgrade, only the tech nerds do that, which sums up the majority of people on tech sites like this one. Most people I see out there are still using the S3 or some other brand that is still doing its job, heck I still have my S3 as a backup "spare" and am using the S4 on a daily basis, the S3 still holds its own after more than two years and does everything I need it to do just fine. For the majority of people if the phone still works they will not upgrade, unless the new device has features that are needed on a day to day real work usage.
Posted via Android Central App

Agreed

Posted via Android Central App using an LG G2.

someguy01234 says:

They still made a $7.1 billion profit for Q2. Compared to $75.6 million profit from HTC. Well.. you get the picture. So all these detractors comments hoping Samsung to fall are pointless.

law2010 says:

Great news! Samsung needs to be brought back to the ground. Maybe people will finally want to get away from the bloated garbage-- you know, TouchWiz and silly plastic phones. At least the G3 could rock plastic right.

chowdog13 says:

"phablets" please, please, don't use that word........................ (shudders)

1966cah says:

My hope is that Samsung's decline is at least partly attributable to other manufacturers gaining some traction in the market. I'm personally not a fan of either their products or some of their business decisions, and want to see more players in the marketplace do well.

buffdaddy72 says:

Exactly, HTC and LG have upped their game by releasing some really nice devices over the last year.

Jpdell says:

I'm not an expert but how about this. Have one amazing flagship (GS5Prime) One phablet like phone (Note 4) a low end phone that can compete with the Moto G (Galaxy 5 mini). ONE I MEAN ONLY ONE TABLET. And maybe a active version of a flagship. Way too many different phones being released by Samsung. Just give us an actual innovated flagship and they will be fine. I still have a gs3 and haven't had the need to upgrade. I would have probably switched to the gs5 but gimmicks aren't a desire for me and the gs5 prime made killed the desire all together. Also I'm using a stocked based 4.4 ROM and its great. L looks amazing. It would be a dream to have Google's L UI with Samsung's apps and features. MAKE IT HAPPEN.

debsawyer says:

My point exactly!

debsawyer says:

Samsung is announcing too many products. They should stick to one tablet, and 2-3 phones per year.

debsawyer says:

They should also get rid of the crapware. Why have the same products on the phone that Google already offers?

buffdaddy72 says:

Have no issues with Samsung, truth is I just got bored of their phones. Switched over from an SIII to a G2 and haven't had any regrets.

If the Note 4 impresses, I may jump back otherwise it looks like the G3 for me.

DaMaRa1109 says:

With the iPhone 6 and Note competitor around the corner, Samsung better get their s**t together quickly. People getting bored with useless gimmicks and mediocre hardware improvements. Every phone is good these days, gotta be great! Posted from a s5 with all their bs turned off lol.

DAS says:

People please STOP!

Samsung made over 7 billion dollars in profit in just 3 months. There is no problem here; move along.

BrockS. says:

Exactly.

Posted via Android Central App

jimbo says:

Samsung only has a dominant position in the American market where people are easily lured into paying premium prices for cheaply manufactured devices.

Samsung's business model doesn't work for the world's largest markets, China, East Asia, and India where people are more discerning about the value proposition.

Wish I had made 7.1 billion and been disappointed that I feel short from expectation of 8 billion. I could by all the smartphones I wanted

BB_Bmore says:

The fact is Samsung can't go on forever top dog the fact is nobody can. everyone has to fall from grace at some point and someone will step in to take the throne

Sent from an HTC or Nexus. Hopefully one day soon, an HTC Nexus super tablet.

net62957 says:

Dang.......slow news day.

Posted via Nexus 5 with SwiftKey

net62957 says:

Some like big macs, some like whoppers...........no problemo.

Posted via Nexus 5 with SwiftKey

Stephan Hall says:

The S5 has had less than stellar reviews. It's a nice device, however other OEM's are closing the gap. Imo, the G3 offers more for less money. Then there is the HTC M8. Another issue for the S5 is that really doesn't offer enough to upgrade from the S4. Touchwhiz has become a real negative for Samsung. You add all these factors together . . . and yes you have weak demand. I'm just suggesting!

Posted via Android Central App

How about not releasing 3 identically specced tablets? Tab pro tab s and note 10 2014 ed.

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jimbo says:

5 reasons Google Nexus 6 will beat iPhone 6 and Samsung Galaxy S5

http://www.christiantoday.com/article/google.nexus.6.will.beat.iphone.6....