Skip to main content

Samsung suffers as smartphone sales drop

Electronics giant Samsung has reported net profit of £2.9bn for the second quarter of 2015, £0.5bn less than the £3.41bn it reported for the same period the year before.

Sales in its mobile division were £1.4bn, which is £100m less than in 2014. The company stated that it would be making a "strategic adjustment" to the price of its high-end S6 model and would be launching new large-screen devices.

According to the BBC, sales of the S6 smartphone fell short of expectations because the company could not meet the demand for its flagship model.

At the same time, rival Apple has been gaining ground. The firm recently reported a strong quarter ending 27 June 2015, driven by record sales of iPhone and Mac, record revenue from services and the launch of Apple Watch.

According to analyst IDC, Samsung is the largest smartphone maker, with 24.6% market share, 6.3% ahead of Apple. But it remains second, behind Apple, in terms of tablet shipments.

Jean Philippe Bouchard, IDC research director for tablets, said: "We're seeing a profound shift in the vendor landscape as the top two vendors, Apple and Samsung, lose share in the overall market. In the first quarter of the year, Apple and Samsung accounted for 45% of the market and this quarter, with the growth of vendors like LG, Huawei, and E-Fun, their combined share dropped to 41%."

IDC said longer life cycles, increased competition from other categories such as larger smartphones, combined with the fact users can install the latest operating systems on their older tablets, has stifled the initial enthusiasm for these devices in the consumer market.

Like Apple, Samsung has also introduced a mobile wallet. Working with Mastercard Digital Enablement Services, the Samsung Pay service is scheduled to launch in the US and South Korea later in summer 2015. The company plans to roll out the payment service in Europe, but did not give any details of when it would be available.

Beyond mobile, Samsung's semiconductor division grew fastest, with 10% year-on year growth, thanks to demand for high-density DDR4/LPDDR4 memory chips, along with the shift to high-density storage and broader adoption of solid-state drives.

According to analyst Gartner, memory manufacturers currently enjoy a strong chip-pricing environment, which sets the stage for continued spending growth through 2015. But Gartner research director Bob Johnson said he anticipates an oversupply in DRAM in 2016, which he said would lead to a 13.6% decrease for worldwide memory spending in 2016.


Source: Samsung suffers as smartphone sales drop

Comments

Post a Comment

Popular posts from this blog

Samsung is building a revolutionary ROLL-UP smartphone

GETTY • US PATENT OFFICE Example of a flexible display, LEFT, and the illustrations filed with the Samsung patent, RIGHT Samsung has been awarded a US patent for a brand-new foldable, rollable display to use across its smartphone and tablet ranges. The South Korean technology firm recently used its flexible display technology in the award-winning Galaxy S6 Edge, which has a dual curved QHD screen. However this latest patent, which was published by the United States Patent and Trademark Office, shows the company has bolder ambitions for its curved displays. The illustrations filed with the approved patent reveal a cylindrical hub, which houses the rolled display – which unfurls like a pair of window blinds. US PATENT OFFICE The US patent contains a futuristic cylindrical smartphone with a roll-up display Users then pull a tab at the end of the multitouch display to unroll it from the hub and use the full screen real estate available on the tablet or smartphone. To achiev
Post a Comment
Read more

The Samsung Galaxy Note7 (S820) Review

This year has been difficult for smartphones, which is a bit of a paradox when you consider just how much better things have gotten compared to last year. With Snapdragon 820, 650, 652, and 625 we've finally moved past the shadow of the Snapdragon 810, 808, and 617/615. While there were Android devices that shipped with the Exynos 7420, they were often paired with a modem that was not necessarily the most power efficient. Despite all of this, there seems to be a general disappointment with smartphones. People are increasingly finding it hard to justify phones like the HTC 10 or Galaxy S7 with competition from OnePlus, Xiaomi, and even Apple with their iPhone SE. In this context the Galaxy Note7 brings much of the flavor of the Galaxy S7 edge, but blends it with the S-Pen of the Note line and a few new features like the iris scanner. If you were paying attention to the industry with the launch of the Galaxy S6 and Galaxy Note5, it's very much more of the same rather than the m
Post a Comment
Read more

Why do Android fanboys hate admitting that Samsung copied Apple?

It's impossible to cover the mobile market without diving into the good ol' "iOS vs. Android" debate from time to time. These are the two biggest mobile platforms on the planet, so they're constantly being compared. Likewise, Samsung and Apple are the world's top two smartphone vendors, so their phones are constantly pitted against each other as well. Of course, there's another reason Apple and Samsung are often mentioned in the same breath: after entering the market, Samsung quickly grew to become the top mobile device maker on the planet thanks in large part to Apple. First, Samsung did everything it possibly could to copy Apple's iPhone and iPad. Then, it spent billions upon billions of dollars belittling Apple products in TV, online, and print advertising. Samsung spent years positioning its own devices as the cool alternative to Apple's iPhone, and its efforts paid off big time. Even now, Samsung continues to copy Apple all the time acro
Post a Comment
Read more