Samsung Experience Shops (Best Buy 001)

Samsung said profit fell for a second straight quarter as sales in its smartphone division continued to dip. The South Korean electronics giant announced its earnings for Q1 2014 this morning, and its operating profits for the period fell 3.3% from the year-ago-quarter.

Investors are particularly concerned with the growing trend of slumping handset sales—Samsung’s mobile division is also down 1.2% year-over-year. The just-released Galaxy S5 is expected to give its Q2 numbers a boost, but the future beyond that is less than certain…

CNBC reports:

Still, analysts say the South Korean firm’s mobile business faces a challenging year ahead.

“[The fall in handset sales] is the worry as it’s a cash cow. While we saw some encouraging signs how the Galaxy S5 may be doing in the upcoming quarters there’s obviously an increase in pressures from the price perspective as well as the marketing costs,” said Bryan Ma, vice president of IDC Singapore.

And Samsung’s mobile business faces other threats as well. Chinese-made phones are increasing in quality, putting pressure on the company’s low-end offerings, and Apple is expected to turn up the heat on the high-end later this year with a larger-screened iPhone.

“The signs that we were already seeing around Galaxy S5, frankly the comments were better than I expected. In that sense, they do have a pipeline in front of them but that’s short-term. The concern is more long-term whether they are going to have anymore real innovative products that’s going to change the world,” Ma said. 

What this all amounts to is that we’re reaching a saturation point in the smartphone market where mobile hardware companies need to start seriously thinking about their ‘next big thing.’ And I’m interested to see what Samsung, Apple, and the others come up with.

You can learn more about Apple’s latest earnings report here.

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  • Fahad Tariq

    oopss samshit.

    • Technocrz!

      yup sameshit

      • sggodsell

        Considering the S5 was released world wide April 11, then sales for the S5 will be reflected in Q2 and not Q1. I recently acquired the S5. It has so many great features and options. I call it the swiss army knife of smatphones.

      • Technocrz!

        Yes smatphone

    • BozzyB

      The article does not mention that the sold units dip after 4 yrs for the fist time. Also the number of sold units or the market share is no reason to cheer for Apple. Samsung’s market share is double than Apple’s.

      Check out this quote from Digits:

      Data from research firm Strategy Analytics Tuesday showed the South Korean company’s first-quarter smartphone market share in terms of units sold slipped to 31.2% from 32.4% a year earlier. Its closest rival, AppleAAPL +3.73%, also saw its market share slip to 15.3% from 17.5% a year earlier in the same period.

      Strategy Analytics said Samsung shipped 89 million units in the first quarter, compared to Apple’s 43.7 million units. Samsung doesn’t disclose its smartphone shipments.

    • Decio Arruda

      It. houver it was “samesong”

  • N&LH

    This is really funny “whether they are going to have anymore real innovative products that’s going to change the world”, the only thing that Samsung good at is copying others.

    • xSeriouSx

      And what exactly has your herd-master invented? That’s right, nothing.

      • N&LH

        nothing, are you sure ? or do you really think Shamesung is innovative company ?.

      • xSeriouSx

        They’re just-as innovative as Apple if not more, it’s just Apple fantards that dismiss every change they make as “gimmick” or “useless” until Apple makes the same change in their devices or software.

      • @dongiuj

        Answer the question.

      • Umut Bilgiç

        Dude.. Stop.. No one is talking about inventions. It is the innovation that we are talking about and the industry cares about.

      • nonchalont

        Who cares …Samsung and Apple don’t put money in our pockets. They’re both decent products. Choose whatever fits your needs; try both. Samsung may work better for some or vice versa. Remember, competition is good for all of us. Ultimately, people are playing sports teams with business companies. GOOOO MCDONALDS!!!!!

    • Andy

      I can list of the number of innovations Samsung has made:

      • N&LH

        Can you list them please ? what we have seen so far from Samsung only copying others

  • James Allen

    For 1 they always try and rush out things just to be first. And it’s crap. Sec. They will loose more money when the new iPhone comes out with bigger screen. All the people I talk to say. They wanted bigger screen. And when apple comes out with one. They all coming back to apple. This isn’t new news. Samsung will lose a lot of people. When Apple comes out with big screen on there iPhones

  • Mozaik

    I hope android users will shut the hell up about “apple is doomed or is in deeps###” , after this.

    • BozzyB

      Android is not Samsung. All losses in market share went to other Android vendors. Apple lost also around 2 percent points. So no gain here.

      • Mozaik

        Android users belief “2 percent down = apple doom” , MIND BLOWN.

      • BozzyB

        Hmm.. I wouldn’t concern 2 percent points as relevant but rather the fact that the market share of Samsung/Android is around 30%/80% whereas Apple’s at 15%. Perhaps this is what those statements are targeting on.

        see also:
        Samsung Rises To Nearly Double Apple’s Smartphone Sales, Forbes

      • Rowan09

        Yes and doesn’t make near the profit. Samsung makes most of their money from sub par phones not the premium devices.

      • Ваше Онтатиле Масвибилили

        Most of those are from low end smartphone sales. It doesn’t even come close to Apple’s profit margin.

  • Technocrz!

    Innovation and samsung two different things, copy & samsung same to same.

  • Technocrz!

    Ill be more than happy watching samsung sinking. so many ng eeerrrrrrr

  • jack

    I hope they go broke… Corrupts

  • Nvrhde

    What about the iOS market share news In the U.S

  • hkgsulphate

    haha

  • Jason Dennery

    Not sure just how much the S5 is going to help their numbers. They don’t appear to be selling very well. Verizon is already giving them away via a buy one, get one deal, and T-Mobile / Sprint are already dropping the price as well. I have yet to see an S5 in the wild. I keep hoping to run into one so I can play around with one, but I haven’t seen any so far.

    I think the Note is the single biggest thing killing the Galaxy series. I see a LOT more new Note 3 users than new Galaxy users.

  • @dongiuj

    Some really innovative comments here…”sameshit” etc? It’s like a who’s who of new apple fangirls. Come on girls, think original. You can do better than this…..or can you?….Most probably not. Come on, prove me wrong. Prove to me that you are all not the child everyone thinks you are.

  • Alberto Espinal

    This is what Samsung will never understand that Apple is a cult and Samsung is not, no one is loyal to Samsung they just buy it cause of the screen size, Apple releases anything and it will sell millions because of their followers and of course its quality, lets wait until Apple releases its Iphone 6 and say goodbye Samsung!

  • Batman

    Only down 3%?
    Well, nobody is sure the exact number. Cause Shamesung is full of lies.