Samsung profits drop as the company faces fierce competition in both low and high end markets

By , Jan 23, 2014

samsung stock

Things are not happy and beautiful any longer for Samsung, the world’s number one smartphones manufacturer. As reported by Bloomberg, the Korean giant has posted its slowest growth since 2011.

Who’s to blame for the slow growth pace? For one, there is Lenovo, Huawei and other makers of cheap smartphones who’ve been flooding the markets in many areas, especially in Asia, a strong ground for Samsung. Apple is also partly responsible from Samsung’s decline as the fruity company has been luring high-end customers away from the Galaxy line maker…

The news will probably feel like a bucket of cold water thrown on the Korean company which has been riding high on its status of number one for a while. Sometimes, being number one doesn’t really matter if you can’t keep these profit margins high, and that’s exactly what Samsung is realizing right now.

According to Bloomberg:

Fourth-quarter operating income at Samsung’s mobile unit, the company’s biggest profit driver, was 5.47 trillion won, little changed from a year earlier and down from a record 6.7 trillion-won profit in the quarter ended Sept. 30, the company said.

The company said it “planned to lower its mobile marketing spend this year relative to revenue, after big promotional spending hit fourth-quarter profit,” reports Reuters. Maybe it’s a not a bad thing?

On the other side, Apple is expected to have shipped a record 55 million iPhones during last quarter. We’ll get confirmation next week as the company will report its Q1 financials.

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  • Lordrootman

    the worse is on the way wait for iPhone 6 with big screen

    • N&LH

      Samsung will have a nightmare because of iPhone 6 will have a bigger screen & I think Apple has cool products in the pipeline

    • Aditya Bhatt

      The only major reason I avoided Apple was due to the small screen size. If they make something like a 4.7 – 5 inch iPhone 6 with 16:9 aspect ratio, then I’m sold.

  • Shingo

    shamesunk ……

  • Rowan09

    When you start competing with your own phones it was only a matter of time. Samsung will be ok, but won’t see the previous numbers of the past because that feeling of being new is gone.

  • abdullah575

    i whish semirestore updated for iOS 7

    • Parth Patel

      Why do you want semirestore when you can simply restore then jailbreak. Since the latest version of iOS (excluding betas) is being signed by Apple and is jailbreakable there is no need for semirestore.

  • Brandon Miranda

    You guys are like no other. Amazing. You guys actually keep tags on the competition!! That is real blog passion right there!! And oh are they in trouble in 2014. If the pipeline is as full with amazing products as its rumored to be. Oh dear oh my. Is Sammy dear in trouble!

    • jack

      Go to androidauthority and other blogs and see how they hate Apple

      • Brandon Miranda

        I know!! And when you speak out very nicely and don’t day anything disrespectful. They want a fight!

  • Hyr3m

    I have yet to see a bigger pile of conjecture in such a short blog entry on iDB. I seriously thought Christian or Cody spewed this.

  • Sokrates

    The reality has caught up with Samsung. Welcome to 2014 A.D.

  • s0me

    I think you ppl should stop eating so much crap. Ofcourse they gonna say they sold N million Iphones, thats a “marketing” tactic for the average person that wants to be cool for having an Iphone like those millions of ppl.

  • ✪ aidan harris ✪

    This is essentially a game of Battle Ships. Apple might have sunk Samsungs cruiser but they still have an aircraft carrier in the back.

    TLDR; It’s not over till it’s over.

  • jack

    Dog eaters

  • http://twitter.com/int3nsive Int3nsive

    Scumsung had their momentum, of high peak because most of the people who bought their devices thought that it was really the “next big thing”.

    When that people realized the reality, they wanted iPhones and iOS more than ever. That’s why in contrast, the iPhone sales are still very high.

    Scumsung, def. of a company that rip off ideas and concepts, got sued, lost the case, with a lot of anti-trust cases, a president that it’s a huge corrupt, pay for good reviews, pay for bad reviews against his competitors, and the list goes on…

    • N&LH

      Samsung does not know what is the next big thing

      • http://twitter.com/int3nsive Int3nsive

        Actually they know. But its only when Apple shows to them what is the next big thing…

  • Yujin

    Samsung did apple a favor. They help open the market to people with their cheap phones. Now, those same people saw their phones are useless and want something better, but what? That is where Apple comes in. When a bugger screen iPhone comes out. It will be samsung’s end.

  • mav3rick

    Fun to watch users (sheep) bashing or worshiping some Co making huge profits on them.

  • mav3rick

    Fun to watch both herds…