GS5 Screen

On Tuesday, Samsung Electronics warned investors that earnings for its third quarter would be lower than market expectations. The company says it anticipates reporting an operating profit of $3.8 billion for the three-month period ending in September—a decline of nearly 60% year-over-year.

Samsung cites a few reasons for the drop off, including heightened competition in the smartphone market. While the tech giant is selling plenty of handsets, higher marketing costs, fewer shipments of high-end phones and lower average selling prices have negatively impacted operating margins.

Samsung introduced the Galaxy Note 4 and Edge last month, and says that it “cautiously expects” its smartphone shipments to grow in Q4. It adds that it’s also planning a new handset lineup that will include new mid-range and low-end devices, so it can be more competitive in markets like China.

Industry watchers have been wondering how Samsung would respond to new pressure in the high end smartphone market from Apple’s larger iPhones, and ongoing pressure in the low end from Asian manufacturers like Xiaomi. This is, after all, the fourth quarter in a row it’s reporting low profits.

Apple, for its part, will be announcing its (fiscal) fourth quarter earnings on October 20, which covers the same three month period ending in September. It’s also expected to report light smartphone sales, as many consumers likely anticipated the launch of the iPhone 6 and upcoming holiday sales.

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  • Concerned in app purchaser

    Yep …. Good luck samsung!!! The only way they improve is getting off android and redesigning their phone!!

    • Matt

      If they get off Andrpid – then there won’t be apps and I higly doubt developers will develop apps for yet another operating system.

      • BoardDWorld

        Ubuntu Mobile…

      • Maxim∑

        Ubuntu mobile is crap, not optimized and is in alpha for most devices except 1 or 2 Nexus phones.

        The Ubuntu app store literally has less than 10,000 apps. Just ask Microsoft how being behind in app development is working out

      • BoardDWorld

        1, if Samsung took it on it will be factory configured with Driver’s. Android is Inherently doomed to lag. Ubuntu is as slick and smooth as iOS.

        2, It’s Linux, running a layer to support Android apps is perfectly possible.

      • Maxim∑

        I see what you mean but aren’t they technically doing this with Tizen?

      • BozzyB

        Don’t use historical stereotypes. Fresh up your knowledge before you numerate nonsense. The only thing which lags right now is iOS 8.

      • BoardDWorld

        It still lags, that’s a fact, It always will as it was never designed for a touch UI, at it’s very roots it was designed to copy Blackberry. Yes you’re right. Many of the things I scorned at Android for doing(screen rotation & apps locking up) is happening right now on iOS 8, I expect this to be short lived. Steve will be rolling in his grave.

      • BozzyB

        The touch input was not the reason for the laging. It was the multitasking capabilities which where not present on iOS. A running task on iOS had its peace and was interrupted by nothing. Thats why it didn’t stutter. On Android it could happened that you play a game or used an app and the email client polled new messages in the background or an app was updated by the android market at the same time. That behaviour would have caused lag on any OS or device back then (except an Amiga). With this challenge in mind, Android was optimized over the years. iOS now gets confronted with this problems because they add critical features which iOS was not designed for. It was a “one step forward – one step back OS” which worked fine this way. They are about to mess it up because the features are been asked for.

      • BoardDWorld

        Actually you’re wrong, it’s because of priority. On iOS the moment your finger is sensed full priority goes into processing what your finger is doing with the UI.

        Android doesn’t, & can’t, do this. The foundation for Android wasn’t based on using a touch interface. They were originally copying Blackberry and the foundation which is still the same to this very day is geared towards that interface.

        Then Google seeing the iPhones popularity made a quick makeshift turnaround without doing what they should have done if they wanted to copy it & scrap the entire original Android project & start again. They didn’t & it has plagued them for years. The moment a priority gets in the way, the moment it is that Android lags.

        Fortunately Androids come up with a lot of workarounds in project butter. But that is again it’s achilles heel because it’s more bloated and requires tons more system performance just to perform the same as iOS.

      • justme

        yep.
        Ubuntu is a great platform on desktop, I did not know yet if it’s good for mobile devices.

      • BoardDWorld

        It’s very good, completely original & locates everything so it’s quickly and visually accessible.

      • Matt

        Which has like 10 apps

    • BoardDWorld

      The funny thing is Samsung’s smartphones are now better than they have ever been, & for the most part an original product. If they could just spend less time pushing out gimmicky features and more time optimising it to run with less overhead.

      • Fanboy 

        HA. Your comment lost credibility when you said SAMSUNG was original. Good one!

      • BoardDWorld

        I think you misunderstood where I said “for the most part”. The only exception is the Edge & the app launcher. Apple followed Samsung this time round going larger and relocating the power button to the same position. Apple doesn’t have the fake perforated leather or the touch wiz UI or Pen optimised apps. Samsung have differentiated themselves. They had too after all their copying.

      • Fanboy 

        Since when did Samsung “invent” the bigger screen, therefore meaning Apple “copied” them by making a bigger screen? I never understood this logic from people, that’s like saying Apple also “copied” making a bigger battery, lol.

      • BoardDWorld

        Don’t be daft,.. Who said invent? Everyone laughed at Samsung for making the Phablet, even I did. Now everyone has followed.

      • Rowan09

        It wasn’t Samsung that created the 5″ plus space or a 4″ + space it was Dell with the Streak 5″&7″ and then HTC with the HD1-2 and the first really popular 4+” device being the Evo. Samsung made gave it a name (phablet), but wasn’t the first to do bigger screens or the first to make it popular.

  • Hyr3m

    *due to HTC adding microSD card slots in their phones.

    • JayPe1104

      Due to Apple releasing the iPhone 6 / 6+

      • Hyr3m

        “for the three-month period ending in September”

        Nice try though…

      • JayPe1104

        No not even so unrealistic. The excitement and participation of the upcoming Devices were enormous, that they eventually pushed Samsung´s sales down

      • Hyr3m

        Conjecture FTW!

        Most people don’t switch platforms… and most android users don’t care about switching hardware companies… A lot of people had a Sony, tried a Samsung and now have an HTC and never think twice about it…

        Not many people actually care about Samsung unless it’s pitted against Apple. Most of the time they just get the best suited Android phone there is and that’s not always a Samsung, especially this year… The S5 is just *meh* whereas the M8 is a beast… Unless you go for a Note 3 (or hold on for a 4)… but again there are other ones from competitors that are pretty good too.

      • TwinSon

        In the end, it doesn’t matter and people are going to go with whatever phone they think is going to give them the biggest bang for their buck, Fanboy or not. We’ll see how the Note 4 does when it drops.

        Most people wanted better battery life and bigger screens and now Apple has addressed both so we will see how that plays out in quarter 4.

      • Hyr3m

        *Most iOS users wanted better battery life and bigger screens, the rest of the world already had that for ages…

      • Glenn DolFan Baptista

        So your saying it’s going to get worse lol

      • Hyr3m

        Only time will tell.
        If this article had been about Q4 then JayPe1104’s comment may have been somewhat relevant but right now it isn’t.

      • Rowan09

        Not completely according to Gazelle most people switching from Android where trading in Samsung devices for the 6/6+. Samsung needs to focus on the competition and caring so much about Apple. It seems as if they think only Apple exist at times.

      • Hyr3m

        “most people switching” -> the proportion of people switching vs staying on android remains unknown… That stat is meaningless on its own.

        It’s a bit like saying “the percentage of unemployment increased by 15%” -> 6% + 0.9% = 6.9% -> effective increase of 0.9%… which is 15% of 6. The 15% is meaningless without knowing it’s 15% of 6.

      • Rowan09

        In this case you don’t need to know the percentage of people staying. Samsung is no longer the only choice for most people on Android anymore.

      • Hyr3m

        So you agree with me ? I did say “vs staying on android” and not “staying with Samsung”…

  • Sloth

    More Marketing, Samsung

    Look at all these ridiculous Commercials bashing iPhone, not showing the actual Device itself

  • leart

    now samsung will make a bendable phone

    • They already make one (the Samsung Galaxy Round):

      • You mean the Note 3 with a curved display. Like the Note 4 and the Note Edge, same phones with curved displays.

    • Chindavon

      With this news, it’s actually the Bend-Over phone.

  • Everyone has been talking about apple falling from the sky the past 2 years so I guess samsung tried to copy that as well!!!

    only thing is that apple keeps growing!!

  • anonymous

    actually very few are getting this but, huawei is the main root of all the problem, they are making incredibly cheap smartphones with 5″ screens, quadcore processors etc, they are eating the market up right now, with its brand power, and incredible pricing, its unstoppable, companies like xiomi, meizu,micromax, one plus,oppo etc are not yet strong international brands, and it will make problem for samsung and iphone only in local markets, but huawei, is an international brand and strong one, having been the leader in portable router market and now is slicing the market in their favor, when i say its the main root of problem, i say it from enterprise point of view, from a consumer point, its really positive, forcing the eshtablished brands to stop their dictatorship on the pricing avenue, and open up their pricing scheme, it always baffled me being a mobile technician how very minute hardware could be so expensive, requiring very less hardware, and subpar processing might compared to laptops or desktops which uses much more raw materials and has more power, hopefully huawei can bring the much need justification in the market.

    • Mozaik

      Yeah samsung is in big touble by this other brand because apple is weak in asian market thats why samsung use to get lot of sell in this countries but now other brand has taken over samsung and samsung cant do a thing. They cant even compete in western countries because apple is strong in those country , samsung is stuck now or is in big trouble.

    • Antzboogie

      Good point and competition is good for everyone.

  • Slifur

    You’re going down.

    • @dongiuj

      …on apple.

      • BoardDWorld

        Korean’s are pretty gorgeous, at least the ones that have done the full Nose, Mouth, Chin & Eyes. Haha I guess they’re fake too. Oh well they make great Dramas…

      • Bugs Bunnay

        don’t forget kpop. I bump that driving down the road and disturbing the peace!

      • BoardDWorld

        Yes, it’s amazing how everyone seems to be able to sing so well there.

  • diggitydang

    Samsung has spent too much time in the last year worrying about Apple. All of these anti-Apple ads reflect that. Unfortunately for them, they built their current lineup as too much of a copycat, with nothing really substantial to define who they are… Now that Apple has caught up on screen size (Sammy started losing business when the rumours started that Apple was going to larger screens), Samsung is struggling. How do they respond? Not by re-explaining how great their product is, but by putting out more anti-Apple propaganda!!

    I’m not looking at Apple through rose-coloured glasses though. I find that the pressure put on them to be like Android/Samsung has pushed them to rush things out a bit before they’re ready, causing a few large mid-steps – buggy O/S primarily, shortcomings on hardware etc. If they continue down that path, I think tables START to turn, but Apple has always tried to do things the Apple way, and although they take a lot of heat for that, I respect them more for it.

  • Jonathan

    Their way of quietly saying: Apple made an iPhone that is better than our smartphones.

    • Hyr3m

      “HTC made a phone that is better than our flagship smartphone”

      • Yet the release of the iPhone made them push up their release date instead of an HTC release…

  • Yujin

    The thing is that Samsung may be force to up the quality and craftmanship of the phones but the thing is that this will further eat into their already slim profits. They can’t minimize the crapwere they put in them though as the nerdy market is all theirs and they ain’t apple to charge even more.

  • Tronjheim79

    Good.

    • Blaqheart

      Or better yet Samsung…..

  • Manuel Molina

    Let’s see what the note 4 does. Seems like the hype on Samsung is dying out.

    • Chris Gaunt

      I think it’s partly their own fault too. Look at the commercial saying the iPhone 6 looks likes the Note from 2011! They have all the Notes in a row. Does anyone think ‘hey wait, the Note 1, 2, 3, and 4 all look almost exactly the same!?’ Certainly not the Fandroids.

      • Manuel Molina

        Funny thing, they do look alike. They hasn’t been a change in design in sometime, nor has there been a change in features either. I had a Note 2 and its the same shit as the 3. Samsung put S voice when Siri came out, and than focused on a fingerprint scanner after the 5S. There’s been a lot of catch up although they are suppose to have the best phones. Shit just seems downhill for them.

  • Warmachine69

    Good!! Idk y people buy samsung phones. If they want and android phone there are so many better one’s out there!

  • Warmachine69

    In my opinion Apple, HTC and Google make the best phones

    • iBanks

      I’d say Apple, HTC, LG.

  • A man

    That’s what they deserve! Shamesung kept copying and now a profit drop!

  • Proaxel

    If Samsung is looking to be better than Apple, then they should stick more to what Apple doesn’t do, e.g making their UHD TVs and home appliances.
    But instead right now they are just copying them directly and slapping on these little gimmicks (like curved screens) and advertising HEY THIS IS BETTER THAN THE IPHONE BECAUSE IT HAS [Insert gimmick here]
    And right now they are failing miserably at all of it.
    If you want to be better than Apple, do it right.

  • TwinSon

    I wonder how much money they spend on Marketing, it’s got to be astronomical. It speaks volumes to consumers that they have to make attack ads to persuade people to buy their products instead of letting the products themselves do the talking. Consumers KNOW about Samsung, that’s probably the only other brand that comes to mind without a second thought if it’s not Apple. They wanna hate that when Apple has 9 phones out of millions bend by accident, people still want to buy them but when Samsung bends their phones on purpose, nobody wants them. There is a reason why the Galaxy Round never made it out of Korea.

  • Rey

    lol this even with all the adds they made making fun of Apple make them look even worst giving them a 60% declined. Samsung suck it up now.

  • Due to extremely excess marketing…

  • Rowan09

    Bad times for Samsung, slow sales and Microsoft is also suing them (as well as Motorola, etc) for unpaid royalties for Android OS.