Samsung warns profit to fall 60% • Hacker News Board

Re: Samsung warns profit to fall 60%

#21

Post by zanny » Sat, Apr 06, 2019, 4:02 AM UTC

zaphirplane wrote: post #13

forkLding wrote: post #4

Signals to the end of an era, smartphones have matured and are becoming ubiquitous like laptops. Moreover, the most profitable smartphones belong to Apple which held 86% of smartphone profits generated in the industry in 2018. Samsung was competing more in the mid to affordable segments so it was bound to start losing once others started catching up, especially since its Chinese competitors are basically giving up pr…

> Samsung was competing more in the mid to affordable I assumed Samsung’s android phones were the top of the range. Who do you think is the high end android phone brand

They make high end phones, but their sales volume doesn't make up for the margins. In terms of manufactured phone volume, the Galaxy line makes up a tiny fraction of their total sales.

I feel like the vast majority of the Android ecosystem foot gunned itself pushing its way out of reasonably priced device segments. There really are no modern equivalents to the Moto G or Nexus 5 or even early One Plus phones in the $150-$350 range. Its garbage up through $200, then a giant gap to $1000 phones.

Especially in the tablet segment. I can get why Google didn't want to try to single-handedly prop up the form factor with first party devices, but the last good (and reasonably priced) Android tablets remain the second generation Nexus 7 and Nvidia Shield from half a decade ago.

Re: Samsung warns profit to fall 60%

#22

Post by AFascistWorld » Sat, Apr 06, 2019, 4:06 AM UTC

axaxs wrote: post #5

Samsung's problems are just beginning. They're getting destroyed on every front, and basically all comes from China. On the phone front, they were used to selling phones at premium pricing only relying on their brand name. You don't have to look past Nokia or Blackberry to see how that will end. They're not really innovative, and while their devices are generally quality, they've pushed the price point too high. Xiao…

I won't recommend Xiaomi to anyone I like, and the demise of Samsung phones in China is more "emotionally" driven, yes Samsung phones are expensive, but so do Oppo and Vivo.

They are more out-marketed than "out-tech-ed".

Re: Samsung warns profit to fall 60%

#23

Post by baybal2 » Sat, Apr 06, 2019, 4:07 AM UTC

It's not clear what they are talking about, Samsung Electronics, Samsung Electro Mechanics (their components business,) or the whole Samsung Group.

Re: Samsung warns profit to fall 60%

#24

Post by [deleted] » Sat, Apr 06, 2019, 4:08 AM UTC

caprese wrote: post #19

sanxiyn wrote: post #6

Comments here are out of their mind. Samsung's smartphone business hasn't been a profit center for quite some time. Majority of profit came from DRAM and NAND, and profit fall is directly attributable to recent price crash of both.

> Majority of profit came from DRAM and NAND, and profit fall is directly attributable to recent price crash of both. finally

[deleted]

Re: Samsung warns profit to fall 60%

#25

Post by axaxs » Sat, Apr 06, 2019, 4:10 AM UTC

AFascistWorld wrote: post #22

axaxs wrote: post #5

Samsung's problems are just beginning. They're getting destroyed on every front, and basically all comes from China. On the phone front, they were used to selling phones at premium pricing only relying on their brand name. You don't have to look past Nokia or Blackberry to see how that will end. They're not really innovative, and while their devices are generally quality, they've pushed the price point too high. Xiao…

I won't recommend Xiaomi to anyone I like, and the demise of Samsung phones in China is more "emotionally" driven, yes Samsung phones are expensive, but so do Oppo and Vivo. They are more out-marketed than "out-tech-ed".

I'm not anti Samsung, and having used Xiaomi, definitely not pro for them. That said, it's hard to deny the value they offer.

In the premium market, Huawei is lapping them. Samsung used to vie for best camera. Now they're with Apple in lagging far behind the Pixel and P series.

Re: Samsung warns profit to fall 60%

#26

Post by axaxs » Sat, Apr 06, 2019, 4:12 AM UTC

onlyrealcuzzo wrote: post #9

axaxs wrote: post #5

Samsung's problems are just beginning. They're getting destroyed on every front, and basically all comes from China. On the phone front, they were used to selling phones at premium pricing only relying on their brand name. You don't have to look past Nokia or Blackberry to see how that will end. They're not really innovative, and while their devices are generally quality, they've pushed the price point too high. Xiao…

Samsung is really reminding me of Sony.

Sony has always been an enigma to me. They release devices that appear midrange or yesteryear, and I get excited because I generally test devices in that range. Then I see the price and wonder how they're even in the business anymore.

Re: Samsung warns profit to fall 60%

#27

Post by axaxs » Sat, Apr 06, 2019, 4:13 AM UTC

sanxiyn wrote: post #17

axaxs wrote: post #12

Earlier quoted context omitted.

I appreciate the insight. I don't know anything about that business, and also realize that Samsung as a whole is a huge conglomerate with many things I don't track. Being chip based, I'm assuming they have increasing competition from China though, no?

No. There actually has been a good news from China on DRAM recently. Fujian Jinhua, the leading Chinese DRAM competitor, is rumored to be exiting the business.

Thank you, I'll read into this.

Re: Samsung warns profit to fall 60%

#28

Post by onlyrealcuzzo » Sat, Apr 06, 2019, 4:17 AM UTC

axaxs wrote: post #26

onlyrealcuzzo wrote: post #9

Earlier quoted context omitted.

Samsung is really reminding me of Sony.

Sony has always been an enigma to me. They release devices that appear midrange or yesteryear, and I get excited because I generally test devices in that range. Then I see the price and wonder how they're even in the business anymore.

I think Sony is still a powerful brand for old people?

Re: Samsung warns profit to fall 60%

#29

Post by ehsankia » Sat, Apr 06, 2019, 4:19 AM UTC

evancox100 wrote: post #20

forkLding wrote: post #4

Signals to the end of an era, smartphones have matured and are becoming ubiquitous like laptops. Moreover, the most profitable smartphones belong to Apple which held 86% of smartphone profits generated in the industry in 2018. Samsung was competing more in the mid to affordable segments so it was bound to start losing once others started catching up, especially since its Chinese competitors are basically giving up pr…

Convenient narrative, but it's likely that this has more to do with their component business (nand, DRAM, LCDs, etc.) than their smartphone business. Samsung overproduced a bunch of memory just as demand fell through the floor. [1] Also, your article on Apple's smartphone profit share is from April 2018, so more like 2017 than 2018. Not sure how relevant that is to 2019 earnings. [1] https://www.wsj.com/articles/sams…

What about the fact that the Chinese manufacturers are taking over the Asian and European market, over Samsung and Apple who are both losing market share? They might not be making as much money, as they run much tighter profit markets, but they are basically taking over the market by undercutting the competition.

Re: Samsung warns profit to fall 60%

#30

Post by [deleted] » Sat, Apr 06, 2019, 4:26 AM UTC

axaxs wrote: post #26

onlyrealcuzzo wrote: post #9

Earlier quoted context omitted.

Samsung is really reminding me of Sony.

Sony has always been an enigma to me. They release devices that appear midrange or yesteryear, and I get excited because I generally test devices in that range. Then I see the price and wonder how they're even in the business anymore.

[deleted]