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Apple loses ‘most profitable smartphone vendor’ title to Samsung

UPTOWN
UPTOWN Members, Moderators, Writer Posts: 13,009 Regulator
apple-samsung.jpg?w=300&h=217

This one’s gotta hurt for Apple.
Samsung just reported strong earnings last night, shipping 107 million phones in the second quarter of 2013 to Apple’s 31.2 million iPhones, and taking the title of most profitable smartphone vendor away from the the king of the high-end at the same time.

“We estimate Samsung’s operating profit for its handset division stood at US$5.2 billion in the second quarter of 2013,” senior analyst Neil Shaw of Strategy Analytics said in a statement. “Samsung overtook Apple for the first time, which recorded an estimated iPhone operating profit of US$4.6 billion. With strong volumes, high wholesale prices and tight cost controls, Samsung has finally succeeded in becoming the handset industry’s largest and most profitable vendor.”
The problem for Apple?

The company has failed to bring out new models — and especially a cheaper iPhone — so its product mix has shifted away from the latest and greatest to older models. In other words: too many lower-margin iPhone 4s and 4Ss.
“Apple’s reign as the world’s most profitable handset vendor lasted almost four years, from Q3 2009 to Q1 2013,” Neil Mawston, also of Strategy Analytics, said. “Apple’s profit margin for its handset division has been fading recently due to lackluster iPhone 5 volumes and tougher competition from rivals.”
The other problem is the familiar Apple story: strong sales in the U.S., where its premium strategy is working perfectly, and weak sales overseas, where cheaper Android-based smartphones are sweeping the market. In fact, despite some good forward-looking news in China, where Apple now has 500,000 iOS developers, Apple’s overseas sales were almost all bad news in Apple’s recently-released earnings report.
China was down $3.6 billion sequentially, Europe was down $2.2 billion, and Asia Pacific was down $1.2 billion, adding up to a fairly devastating international earnings picture. “Apple is now under intense pressure to launch more iPhone models at cheaper price-points or with larger screens to fend off the surging competition and recapture lost profits in the second half of 2013,” Mawston added. “Samsung is performing well in the US market, while Huawei, ZTE and other local brands are growing vigorously in China.”

apple-samsung-1.jpg?w=300&h=170

Apple has no one to blame but itself for losing the crown of the smartphone industry.
Apple CEO Tim Cook told us months ago that there would be no new products from Cupertino until this fall. The reality is that this has seen Apple turn in a lackluster Q3 2013 performance, with good iPhone sales (but bad product mix) and poor iPad sales.

Some analysts are writing off 2013 for Apple and looking forward with hope to next year:
“We believe FY13 will prove to be a year to forget, but FY14 will prove to be a year of new product innovations, which we believe will prove positive for the stock price,” Topeka Capital Markets analyst Brian White said.
Cook and company continue to defy Wall Street’s requests for a cheaper iPhone for international markets and repeat the mantra that by focusing on great products everything will be fine. Asked by an analyst whether Apple would be releasing any new product in Q4 this year, Cook simply said:
“We’re here to make great products … if we focus on that and do that really well, the financial metrics will also come.”
Here’s a little shocker for Cook: You actually have to release those products, if you want to prosper.
Some time this year would be nice.

Comments

  • Sion
    Sion Moderator, Legion of Trill, AHH Content Producer, AHH Editor Members, Moderators, Writer, Content Producer Posts: 45,666 Regulator
    edited July 2013
    I told yall this was gonna happen back in the BlackBerry thread and in the Apple threads too. Again Apple doesn't have a competitive advantage no one else can't duplicate. The problem with their past record of them selling record numbers of phones is that you have to factor in the after market whereby everybody gonna have a phone & sooner or later these other developers aren't going to try and compete with the brand name - but the price instead. Cuz that's an area where everybody can sorta make money. With these smartphone companies like BlackBerry, Nokia, Ericsson, HTC and others learning their lesson from their mistakes it's gonna soon be a time where smartphones are going to get cheaper and cheaper, in fact you're already seeing it now.

    I remember meeting Thorstein Heins of BlackBerry back in April and yall may not know this yet but there's a colored BlackBerry phone coming to the market possibly in the coming month or by the end of the year called the BlackBerry Q5. This is going to be marketed as a cheaper alternative phone. It'll work just like the Q10 but it'll be in different colors like red, blue, white, black, pink, gunmetal colors and more.

    The profit margins of these companies are going to decrease as competition gets stiffer and the technology becomes more accessible and therefore cheaper. Samsung is winning now but longer term they're not going to be #1 and neither will Apple. The Smartphone market is one place but it's evolving at such a rate that it's going to take more than the phones for these companies to stay in business. The next move is probably going to be where you have to pay to use the service on these devices from these vendors. This is going to conflict with phone companies too (which I also think in the future the internet might become an essential service or free) but that's another thread.


    Yall should be looking to buy BlackBerry and Apple shares, their at new lows. With BlackBerry being the better bargain of the two.
  • UPTOWN
    UPTOWN Members, Moderators, Writer Posts: 13,009 Regulator
    who was that 🤬 talking all that 🤬 in the black berry thread??? whats his name again??
  • UPTOWN
    UPTOWN Members, Moderators, Writer Posts: 13,009 Regulator
    Welp..... the LG Optimus G and HTC EVO 4G LTE are free on Sprint at BestBuy w/ a 2 year plan so......


    🤬 all of them $8,000 phones that'll be outdated in 3 months.

    got damn ... numbers is even cheaper than me!!!!
  • Sion
    Sion Moderator, Legion of Trill, AHH Content Producer, AHH Editor Members, Moderators, Writer, Content Producer Posts: 45,666 Regulator
    who was that 🤬 talking all that 🤬 in the black berry thread??? whats his name again??

    @rage
  • blakfyahking
    blakfyahking The IC's Resident Father Figure Members Posts: 15,785 ✭✭✭✭✭
    LOL.......@rage stay ethering himself in threads involving business
  • UPTOWN
    UPTOWN Members, Moderators, Writer Posts: 13,009 Regulator
    Welp..... the LG Optimus G and HTC EVO 4G LTE are free on Sprint at BestBuy w/ a 2 year plan so......


    🤬 all of them $8,000 phones that'll be outdated in 3 months.

    got damn ... numbers is even cheaper than me!!!!

    lol, well there's a lot of ppl who need all of that extra 🤬 on their phone for business purposes or whatever. Or they just want a new toy. Too each its own. I'm not one of them. I barely even text ppl.


    For those who don't know and don't want to spend 6 or $700 on the Galaxy S4, Sprint has a 2 year plan for that phone at Best Buy for $200. They also give you a $50 Gift card in exchange for any working Smart phone.


    That means the phone is only $150 to whom it may concern. $70 a month with unlimited talk, text and data.
    if you go to sprint directly its 150 right from the rip plus they waive the activation fee ... and thats before you trade in a phone.... best bet is to keep your old phone stashed up and say 🤬 that 🤬 insurance after the first year is up.
  • DOPEdweebz
    DOPEdweebz What title? www.facebook.com/DOPEdweebzMembers, Moderators, Writer Posts: 29,364 Regulator
    Samsungs G4s are the "in" phone these days for good reasons. I need to sell my iphone.
  • BelovedAfeni
    BelovedAfeni The Pimp Slap App 5150 NationMembers Posts: 8,647 ✭✭✭✭✭
    I never
    I repeat
    never saw the value in ipones
    the 🤬 easily
    u cant change memory
    and u dont own the phone
    it is still property of the apple company
    plus the plans were to expensive
    40 -80 euro a month
    still have my blackberry
  • ATTS
    ATTS Members Posts: 6,663 ✭✭✭✭✭
    I never been a fan of apple products......its gimicky i think

    Androids better
  • Sicky Mouse
    Sicky Mouse Members Posts: 470 ✭✭✭✭
    had a mac when i was 14, 🤬 never worked. 🤬 apple.
  • The Lonious Monk
    The Lonious Monk Man with No Fucks Given Members Posts: 26,258 ✭✭✭✭✭
    This is as it should be. Samsung is a hell of a lot more innovative with what they do. The Apple heads still act like Apple is the paragon of innovation, but I think they lost that title a while ago honestly. I can't say they do anything more impressive than companies like HTC and LG let alone Samsung.
  • CashmoneyDux
    CashmoneyDux Members Posts: 11,217 ✭✭✭✭✭
    ATTS wrote: »
    I never been a fan of apple products......its gimicky i think

    Androids better