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Samsung Now Facing disappointing Galaxy 5 sales, coupled with Lower Profit Margins and depressed Global Market Share ~ Meanwhile Apple looks Forward to an Explosive Sales season next Month with its iPhone 6 and iPhone Air, large-display upgrades πŸŽπŸŽπŸŽπŸŽπŸŽπŸŽπŸŽ

August 1, 2014

β˜… Recent Reports expose a vulnerability in Samsung’s strategy of trying to be “the” mobile-phone company for all the people. The high-end Galaxy S line, the most profitable models for the company, is being squeezed by Apple. Apple will tighten its grip in 40 days or so with its 2 new large-display iPhones hosting 4.7″ and 5.5″ Screens.

β˜… Apple’s iPhone 6 with its 4.7″ screen and the iPhone 6 Air with its 5.5″ screen… these display sizes TRUMPS one of “the” key selling points that Samsung had, big bright displays. At the other end, the low end, of the price spectrum, which Apple cares very little about, Samsung is getting trounced with several new SmartPhone upstarts in Asia such as Xiaomi Corp. Samsung has not learned that “you cannot be all things to all people” and do so profitably.

β˜… The big-squeeze is taking a toll on Samsung’s market share, another statistic that Apple cares little about, as well as its bottom line, a financial characteristic that Apple cares a lot about. While Samsung, a Korean company, still has the largest market-share in smartphones, its slice of the smartphone industry slipped to 25% as of June, 2014, from 33% in June, 2013, according to research firm Strategy Analytics.

β˜… Samsung is Now Facing disappointing Galaxy 5 sales, for its newest flagship smartphone, coupled with lower profit margins and depressed Global Market Share. Recent reports from the Telephone Companies are showing that Apple’s iPhone 5S, almost a year old version is out-selling Samsung’s Galaxy S5 the newly released flagship handset, and Apple’s iPhone 5C is outselling the Galaxy S4. Meanwhile Apple looks forward to an Explosive Sales season commencing next Month (September) with its iPhone 6 and iPhone Air, large-display flagship handsets.

β˜… Conversely, Apple is constantly being badgered by analysts about market-share; Little do they know that Apple cares very little about the overall market-share statistic, as it is focused on the premium handset market; Apple is totally dis-interested in focusing on market-share, or pumping out the greatest number of units at the expense of quality or profit margins. Samsung apparently is satisfied with significantly reducing profits in exchange for increased market share. Well, this il advised strategy is taking a toll on Samsung’s investors, and their investment banking market-makers.

β˜… β€œSamsung continues to face extremely tough competition from Apple at the higher-end of the smartphone market, and from Chinese brands like Huawei at the lower end,” Neil Mawston, executive director of Strategy Analytics.

β˜… Last year, as sales of Samsung’s lineup of Galaxy smartphones and lower-end models surged around the world, Apple experienced its first profit decline, albeit very small; However, its iPhone models, which are priced more costly than other handsets, lost market share, but surged in profitability. Samsung gleefully rubbed Apple’s nose in the dirt, with its television ads, mocking iPhone users as pathetic fan boys.

β˜… Unfortunately for Samsung that there are over 550,000,000 iPhone plus another 225,000,000 iPad, that’s 775,000,000 fan boys & girls out there in mobile-handset-land. In perspective in North America as reported by AT&T, Verizon, Sprint and T-Mobile (the big-4 in the USA) for every Million smartphones that are Activated by service prescribers, 540,000 are Apple iPhones, and 260,000 are Galaxy handsets, 200,000 for all other models combined, like HTC, BlackBerry, Motorola.

β˜… iPhone/Galaxy compared, these figures 54% Apple to 26% Samsung, there is about a Two-to-One margin of unit-sales in favor of Apple. If one looks at Profits generated by SmartPhone sales, Apple achieves about 83% of all profits generated by smartphone sales; the analysts don’t often report on Apple’s Number One position in Market Share profitability. Conversely, what good is selling more units if those sales are not reasonably profitable. Amazon has been selling Kindles for 10% losses for years, and will be soon selling its new Fire Phone for losses too.

β˜… Part of the tsunami of sales that analysts are projecting for Apple, rests with the dangerous Virus Attacks experienced by 79% of Android users, due to the Fragmentation issues with Android’s Operating system…

β˜… Today, 2014, the roles have reversed. Samsung literally yesterday, July 30, 2014 posted stagnating sales and its weakest profits since becoming the world’s biggest phone maker in 2012, just a week after Apple released strong financial results driven by record, quarter over quarter jump in iPhone sales, coupled with increased profitability.

β˜… Recall that Samsung just released their Galaxy 5 model, which apparently is not going very well. Analysts say that the new Galaxy 5 is not much of an improvement over the Galaxy 4. Whereas Apple’s new iPhone 6 is rich with new features, display sizes, coupled with the most significant overhaul of its iOS operating system, where iOS8 has been already release to Apple’s independent development community at Apple’s WWDC 2014 two months ago.

β˜… The graphic below displays all of Apples iOS beta versions over that last 6 years. iOS8 has been in 4 beta versions over the last 60 days. If iOS8 is to be ready for a September roll-out, Apple’s software team needs to lock-down the iOS8 gold-master in 30 days or so.

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