Did Samsung lose $30 Billion because of the iPhone?

[Android4life47]

So how many think that Samsung lost $30 Billion in market shares because of Apple launching the iPhone 6 + before Samsung launch the Note 4

 

[Baby_Doc]

Samsung lost market share not to more expensive Apple products. They lost market share to cheaper, lower end Chinese products. Samsung's lower end Android phones aren't competing well both in price and features with some of lesser known Chinese brands that are sold primarily in other countries.
(The Note series of phones are far from being Samsung's best selling phone. They are just too expensive for the masses.)

Posted via Android Central App

 

[Android4life47]

So you think that Samsung phones are too expensive??? So tell what do you think Apples iphones are dirt cheap??? The note is way less expensive then the iPhone plus and has more features and it's way better

 

[thebrain2u]

It feels like a combination of both. Yes, the iPhone 6 Plus coming out before Note 4 definitely stole away some customers looking for a big screen.

But as Baby_Doc said, it's also the low end where Samsung could have lost out on as well. Their low end phones (not the Note or Galaxy S, the even cheaper ones) have to compete with a lot of new Chinese brands which are coming out now at cheaper prices or have more features at the same price. Doc didn't say iPhones are dirt cheap, he actually says Apple products are quite expensive. It's the low end products that Samsung may be losing out on as competition gets more intense.

 

[Willn]

Technology investors are like fair weather fans, they throw their money towards whatever they think is hot atm. And yes samsung probably took a hit due to iphone 6. Will it last... Probably not, samsung has already sold out the note 4 in korea and is rushing the release. Soon as it comes out watch apple take a hit and samsung receive a boost. Once the big waves are over it will be a holiday race of who has the better sales pitch and product.

 

[I Can Be Your Hero]

Samsung lost market share not to more expensive Apple products.

Yes they did.

Samsung shares dropped when Apple announced 10m iPhone sales. Samsung's high-end larger screen offerings (ie; the Galaxy S and Note lines) don't seem to be attracting enough consumers away from Apple's devices. The major reason Samsung established themselves as a major smartphone player is because they made large screened phones and marketed them aggressively. The high sales of the iPhone 6/6+ suggest that Apple are now playing Samsung's game of phones with larger screens, and are succeeding at it. Samsung being the first mover in that market segment, having multiple years of established product lines of very large screened phones (Galaxy Note in particular) should have been able to establish themselves as the premier large-screen smartphone manufacturer in the world. However, it seems consumers are still attracted to iPhone's moreso than Samsung's devices. And the scary part is that Apple didn't even release the 6/6+ in China....

So that's what investors are worried about and why Samsung's shares dropped suddenly this week. Absolutely had to do with Apple and the iPhone launch.

They lost market share to cheaper, lower end Chinese products

They're also losing to that too. Other OEM's like Huawei, Xiaomi etc are beating Samsung's 'race to the bottom' with good-enough products at a cheaper price point than Samsung.

But it's primarily the iPhone 6/6+ release that's hit Samsung's shares to lose 30 billion suddenly this week, not because of the lower end phones.

Chinese companies have been out-selling Samsung for a couple of years now. That's not the reason why the shares suddenly dropped. It's not like a whole bunch of Samsung investors all woke up on Monday and thought "Wait a minute, Chinese phone manufacturers are outselling Samsung in developing markets. SELL SELL SELL!" No. They woke up and heard 'most successful iPhone launch ever', 'iPhone sells 10 million units on opening weekend', and now they're thinking 'crap, Apple are beating Samsung at the larger-screen game, and Samsung have been losing the lower end market too.....what's next for Samsung?'

 

[FFR]

Technology investors are like fair weather fans, they throw their money towards whatever they think is hot atm. And yes samsung probably took a hit due to iphone 6. Will it last... Probably not, samsung has already sold out the note 4 in korea and is rushing the release. Soon as it comes out watch apple take a hit and samsung receive a boost. Once the big waves are over it will be a holiday race of who has the better sales pitch and product.

10 million iPhones in 3 days, 4 million in 24 hours, that's just in 8 markets not including China.
How many pre orders did Samsung sell?
100,000?50,000?10,000?

Not very many apparently, no figures were released.

Just a point of reference, Samsung only shipped 10 million note 3s.

 

[I Can Be Your Hero]

Just a point of reference, Samsung only shipped 10 million note 3s.

Total sales or in the first month?

For some reason, I thought Samsung were selling about 10 million Note's a month? Am I mistaken?

 

[FFR]

Did Samsung lose $30 Billion because

Total sales or in the first month?

For some reason, I thought Samsung were selling about 10 million Note's a month? Am I mistaken?

Nope totals sales.
Samsung utilizes sell-in when talking about sales not sell through.
They basically saturated the market and are waiting for inventory to dry up. That's one of the primary reason their revenue from mobile phones and semiconductors are getting hit hard.

 

[I Can Be Your Hero]

Nope totals sales.
Samsung utilizes sell-in when talking about sales not sell through.
They basically saturated the market and are waiting for inventory to dry up. That's one of the primary reason their revenue from mobile phones and semiconductors are getting hit hard.

Is that right? So when Samsung talk about sales, they're talking essentially about number of units shipped to retailers/telcos, not necessarily the number of units purchased and in the hands of consumers?

Do Apple use sell-in when talking about sales as well?

 

[Willn]

10 million iPhones in 3 days, 4 million in 24 hours, that's just in 8 markets not including China.
How many pre orders did Samsung sell?
100,000?50,000?10,000?

Not very many apparently, no figures were released.

Just a point of reference, Samsung only shipped 10 million note 3s.

Just for reference samsung sold 10million note 3s in 60 days last year. Apple always has big numbers at their launch dates because they only do it once a year. Samsung however sells way more products than apple releasing them all year round. They have not only the Note4 but also the note edge and the gear s and the alpha comeing out this holiday season, all of which im sure will do well. I beleive last year iphone sold 9 million units by release date... So... They broke their record by 1million. The note 3 did very well on it own last year even with apple selling 9 million. Im sure they will do just fine again this year. Dont jump to the hype and keep a level head in todays markets.

 

[FFR]

Is that right? So when Samsung talk about sales, they're talking essentially about number of units shipped to retailers/telcos, not necessarily the number of units purchased and in the hands of consumers?

Do Apple use sell-in when talking about sales as well?

It's called sell-in, basically it's selling INTO the channel or to the vendors.

No Apple utilizes sell-through.

 

[I Can Be Your Hero]

Just for reference samsung sold 10million note 3s in 60 days last year.

But is that 10 million devices sold-through to consumers, or sold-in through to vendors?

Samsung however sells way more products than apple releasing them all year round.

Unfortunately for Samsung, that doesn't equate to larger profits.

The note 3 did very well on it own last year even with apple selling 9 million.

However last year Apple didn't have a 'phablet' device for sale. This year they do. The question will be will the iPhone 6+ encroach on the Galaxy Note sales? That's what I'm interested in.

 

[FFR]

Just for reference samsung sold 10million note 3s in 60 days last year. Apple always has big numbers at their launch dates because they only do it once a year. Samsung however sells way more products than apple releasing them all year round. They have not only the Note4 but also the note edge and the gear s and the alpha comeing out this holiday season, all of which im sure will do well. I beleive last year iphone sold 9 million units by release date... So... They broke their record by 1million. The note 3 did very well on it own last year even with apple selling 9 million. Im sure they will do just fine again this year. Dont jump to the hype and keep a level head in todays markets.

I'm sorry to break it to you but Samsung only sold 10 million note 3's total, for 2013 and 2014.

Your welcome to look at samsung balance sheet to see for yourself.

As for Samsung current line up I wouldn't hold my breath.

According to samsung's own investment firm, Samsung’s high-end smartphone business might be in a lot of trouble.

"Samsung Securities says Samsung phones have ‘lost appeal’"

http://bgr.com/2014/09/23/samsung-vs-apple-vs-xiaomi/

 

[shanghaichica]

Yes they did.

Samsung shares dropped when Apple announced 10m iPhone sales. Samsung's high-end larger screen offerings (ie; the Galaxy S and Note lines) don't seem to be attracting enough consumers away from Apple's devices. The major reason Samsung established themselves as a major smartphone player is because they made large screened phones and marketed them aggressively. The high sales of the iPhone 6/6+ suggest that Apple are now playing Samsung's game of phones with larger screens, and are succeeding at it. Samsung being the first mover in that market segment, having multiple years of established product lines of very large screened phones (Galaxy Note in particular) should have been able to establish themselves as the premier large-screen smartphone manufacturer in the world. However, it seems consumers are still attracted to iPhone's moreso than Samsung's devices. And the scary part is that Apple didn't even release the 6/6+ in China....

So that's what investors are worried about and why Samsung's shares dropped suddenly this week. Absolutely had to do with Apple and the iPhone launch.



They're also losing to that too. Other OEM's like Huawei, Xiaomi etc are beating Samsung's 'race to the bottom' with good-enough products at a cheaper price point than Samsung.

But it's primarily the iPhone 6/6+ release that's hit Samsung's shares to lose 30 billion suddenly this week, not because of the lower end phones.

Chinese companies have been out-selling Samsung for a couple of years now. That's not the reason why the shares suddenly dropped. It's not like a whole bunch of Samsung investors all woke up on Monday and thought "Wait a minute, Chinese phone manufacturers are outselling Samsung in developing markets. SELL SELL SELL!" No. They woke up and heard 'most successful iPhone launch ever', 'iPhone sells 10 million units on opening weekend', and now they're thinking 'crap, Apple are beating Samsung at the larger-screen game, and Samsung have been losing the lower end market too.....what's next for Samsung?'

It's only been this year that the Chinese OEMs have been out selling Samsung. The new iPhones have just been released and 10 million was not unexpected considering that they sold 9 million in the same period last year. The fact is Samsung have been losing money all year so the investors are not confidant.

Posted from my S5

 

[shanghaichica]

Nope totals sales.
Samsung utilizes sell-in when talking about sales not sell through.
They basically saturated the market and are waiting for inventory to dry up. That's one of the primary reason their revenue from mobile phones and semiconductors are getting hit hard.

They've sold more than 10 million in its life time. The note 3 sold 10 million in the first two months. So are you saying that they didn't sell a single note 3 after the first 2 months?


http://bgr.com/2013/12/10/samsung-galaxy-note-3-sales-10-million/

Posted from my S5

 

[FFR]

They've sold more than 10 million in its life time. The note 3 sold 10 million in the first two months. So are you saying that they didn't sell a single note 3 after the first 2 months?


http://bgr.com/2013/12/10/samsung-galaxy-note-3-sales-10-million/

Posted from my S5

Listen Samsung reports sell-in not sell through.
I'm saying they only manufactured 10 million note 3 and supply completely outstripped demand.
If you want to prove me wrong go ahead but I have combed through every quarterly result and financial statement since then.

 

[Willn]

Samsung lists sell in because until recently they didn't have brick and mortar stores like apple does. Thing is though, apple reports both sell-in and sell-through as "sold". They are aware of their own sales in store obviously, but also pad their numbers with "shipped" units. There is no way apple can know for sure how many iphones bestbuy walmart at&t verizon or other retailers have sold until that retailer either reports back to them or comes back asking for more or decides to return the unsold units. Apple has gotten into trouble with this in the past so its really best to just consider apple as a sell-in company aswell.

 

[thegame161]

Apple managed to bring out their bendy phone before the edge..

 

[Willn]

Uh oh...I foresee alot of returned devices lol
iPhone 6 Plus Bend Test - YouTube
http://www.youtube.com/watch?v=FwM4ypi3at0