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back to article Samsung's flagging phone fortunes hit profits hard

Samsung has promised to shake up its smartphone line-up to try to win back some of the ground it has lost in the sector, after it revealed that its third-quarter operating profit was the lowest in more than three years. Sammy’s operating profit was 4.1 trillion won ($3.9bn), while net profit was 4.2 trillion won. In the same …

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  1. Black Plague
    Facepalm

    Just a thought...it might help profits if you didn't try to make a device in every single conceivable screen size, in quarter-inch increments.

    Would also help to not have three or four of the same damn tablet, with the only difference being a slightly different case design.

    6 0 Reply
    1. Anonymous Coward
      Reply Icon
      Anonymous Coward

      Might also help if....

      ... they don't charge Apple prices for non-apple products.

      Android is pretty Generic as a system and the only differential would be the build quality and support. Frankly, it is not that great compared to Lenovo and Xiaomi ( who are less than half the price).

      So this is a reality check and welcome back to earth, Samsung. you have had your super profits already and creamed the market for what it was worth over the last few years. We still love you if you price your products at around £250 to £300 mark, which is the sweet spot for ANY smartphone. As the Chinese and Moto G have shown.

      4 1 Reply
      1. NotWorkAdmin
        Reply Icon

        Re: Might also help if....

        I was going to mention the Moto G - my son has one and while it's rather nice I do half wish I hadn't got my Nexus 5 as the Moto G is in a lot of respects almost as good but significantly cheaper. Basically mid range phones are now of a quality that high end phones don't have much of a lure for me anymore. Couple that with more people going for sim only contracts and you'll start sellling less handsets. I know I'm keeping my Nexus 5 for at least 2 years to get my money's worth.

        2 0 Reply
  2. Anonymous Coward
    Anonymous Coward

    Also ...

    Announcing the release date of your flagship handset and then changing that date 3 times (and counting) is bound to eliminate customer confidence.

    (Note 4)

    0 0 Reply
  3. Lusty

    Analysts

    Does this mean the analysts will finally stop telling Apple to release cheap phones? Seems to me that at least part of the issue is the many people with crappy Samsungs telling everyone who will listen how bad their Samsung is. With the all or nothing approach everyone gets the top experience so there are fewer as reports. The high end Samsungs are generally good but they are sabotaging their own market with the cheaper models

    2 0 Reply
    1. Charlie Clark Silver badge
      Reply Icon

      Re: Analysts

      No, the market is getting saturated and, therefore, more competitive. I would be surprised if we don't start to similar quarter-for-quarter comparisons for Apple starting with this quarter (Q4 2013 was the first time Apple released its products around the world at the same time) with tablet sales already following the general trend: many of those who've already got one don't feel the urge to buy a newer one.

      2 0 Reply
      1. Anonymous Coward
        Reply Icon
        Anonymous Coward

        Re: Analysts

        Apple is going to break their record sales handily this quarter. They're limited by production, and saying they might be so limited until the end of the year - that will be a first for them, usually the shortages clear up in a month or less. They'll reach a point eventually where their YoY comparisons stop showing growth, but they're at least a couple years from that since all the iPhone owners who wished for larger screens but weren't willing to go to Android for that have a very reason to upgrade.

        High end phones are still being upgraded on a two year cycle. Tablets are a different matter, and probably upgraded on more of a PC/laptop cycle. Apple is close to selling its 600 millionth iPhone, so even if the average upgrade cycle across all iPhone owners is three years, that still leaves room for quite a bit more YoY sales growth.

        0 0 Reply
  4. Avatar of They
    Mushroom

    Costs....

    And making them £600 (Note 4) is taking the pi$$

    0 1 Reply
    1. Charlie Clark Silver badge
      Reply Icon

      Re: Costs....

      It's not for me but the Notes seem to pack a lot of functionality into a device. Let's face it, it's the note that convinced Apple of the need for a super-sized phone. I expect Note sales will continue to be good, because most users of them seem to love them. It's other parts of the portfolio which need looking at, where the perceived advantage over cheaper phones doesn't seem to be worth the money.

      1 0 Reply
  5. Hans Neeson-Bumpsadese Silver badge
    WTF?

    "halve in the third quarter"

    Is it just me, or dId anyone else find that a particularly tricky phrase to parse?

    2 0 Reply
    1. Frankee Llonnygog
      Reply Icon

      Re: "halve in the third quarter"

      Not to be divisive but only the lowest common denominator would puzzle over that for more than a fraction of a second

      3 0 Reply
  6. Anonymous Coward
    Anonymous Coward

    2 words

    Touchwiz(lack of innovation) and updates.

    1 1 Reply
    1. Philippe
      Reply Icon

      Re: 2 words

      Band aid?

      0 0 Reply
  7. Anonymous Coward
    Anonymous Coward

    Or, people still happy or locked in to a 2-year with their great Note3 & S4

    Android shoppers on the whole only upgrade when the new device offers something better.

    0 0 Reply
  8. Anonymous Coward
    Anonymous Coward

    Xiaomi is killing them

    They make phones that are comparable to the GS5 but sell it at a third of the price. Samsung's low/mid range phones look like a joke compared to that, and their high end phones look expensive compared to that. When Xiaomi starts expanding out of China Samsung is going to be in some real trouble.

    I wonder if Xiaomi will introduce a phablet with a stylus, so they can kill the Note as well?

    0 0 Reply

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