Samsung preparing for low profits : Blames Saturated market

[Onemufc]

The world's largest phone-maker has issued its guidance for the third quarter of the 2014 fiscal year and warns that there may be a steep drop in profits from a year ago and from the previous quarter. With the guidance, this would be the fourth consecutive quarter that Samsung's profits are slumping. Operating profit could drop by as much as 60 percent.

Link :-
http://www.androidcentral.com/samsung-warns-steep-decline-profits-q3-f2014-guidance

 

[raksrules]

Didn't they saturate it themselves by introducing handsets almost every month in all possible processor/RAM/Storage etc combinations.

 

[Onemufc]

Didn't they saturate it themselves by introducing handsets almost every month in all possible processor/RAM/Storage etc combinations.

Thats the Irony of it

 

[nimod]

Now they should go beyond smartphones.
Wearables, nanotech and whatever they have been hiding...

 

[blr_p]

so the OP's article does not even have a source yet. here is one from jan with the same story.

Why are their profits slumping, its simple. A lack of innovation which is expensive. its time samsung did more.

They did it with the note & zoom series. They have an edge with amoled screens. who else can make tabs with screens like that.

This is one of he reason i like to hold on to devices longer. How important is it to upgrade every year when the gap gets smaller.

Smart devices segments makes up two thirds of samsung groups profits !

 

[rakesh_ic]

The first and foremost thing they gotta do is do away with that shitty age old design of their phones. They all look the same and retaining the same design is a suicide by itself. Even Apple who had the reputation of sticking to that design has changed a lot on iPhone 6

 

[onlyravi]

They should blame themselves for saturating the market with all plastic garbage priced insanely.... and then arrogantly setting higher than valued expectations....

 

[blr_p]

it is better to cannibalise yourself then allow some one else to do it. That's how they hold on to their market share.

The first and foremost thing they gotta do is do away with that shitty age old design of their phones. They all look the same and retaining the same design is a suicide by itself.

keeps their manufacturing costs down ie increases profits means more products.

Design from a longevity and repair point of view is optimal and is direct win for the consumer. Also people expect that similar look and feel with their next device.

 

[vinukm]

The world's largest phone-maker has issued its guidance for the third quarter of the 2014 fiscal year and warns that there may be a steep drop in profits from a year ago and from the previous quarter. With the guidance, this would be the fourth consecutive quarter that Samsung's profits are slumping. Operating profit could drop by as much as 60 percent.

Link :-
http://www.androidcentral.com/samsung-warns-steep-decline-profits-q3-f2014-guidance

They are preparing for a low profit and not Losses. In my understanding the sheer size and capacity of Samsung can bring down the prices to a great extent if they wish to. Apple is making money because they are targeting altogether a different audience with their products. Samsung has to think in lines of other Korean and Chinese counterparts to compete with them as their products are similar.

 

[cricfan]

Problem was they concentrated mainly on Apple.Their pricing was similar to that of apple.Overpriced.Unfortunately samsung fanbois unlike apple ones were price consious and ditched them for paisa wasool phones.If samsung is not careful they will go the HTC way.