Samsung's Mobile Business Sees Major Profit Drop Following iPhone 6 Launch

During its Wednesday earnings call, Apple rival Samsung Electronics reported net profit of 4.63 trillion won ($4.35 billion) for the January to March quarter, a 39% drop from its net profit of 7.49 trillion won in the year ago quarter. A sizable portion of the lost profit came from Samsung's mobile division, which brought in 2.74 trillion won ($2.5 billion) in the first quarter of 2015, vs. 6.43 trillion won in the first quarter of 2014.

Despite the year over year profit loss, Samsung's earnings release highlighted its quarter over quarter improvement and pointed towards increased sales of middle-end smartphones including the Galaxy A series. Samsung doesn't divulge its smartphone sales, but analysts believe the company sold 83.2 million smartphones during the quarter, compared to Apple's 61.2 million.

iphone6-stock
The high number of sales let Samsung regain its title of the worlds largest smartphone maker, but many of those sales were for lower-priced phones and not flagship devices, causing it to lose profit year over year. Much of Samsung's profit loss can be attributed to the introduction of the iPhone 6 and 6 Plus, letting Apple devices compete with Samsung devices on screen size for the first time.

Ahead of the launch of the two larger-screened iPhones, big screens were a feature that set Samsung devices apart from iPhones and drew customers for the South Korean company, but with the iPhone 6 and the 6 Plus, Samsung has lost some of its grasp on customers seeking devices with bigger displays.

Samsung expects its profits to increase during the second quarter following the global launch of the company's new Galaxy S6 and S6 Edge and on the strength of its semiconductor business. According to Samsung, demand for its curved S6 Edge has been high, but limited supplies have restricted sales.

Tag: Samsung
Related Forum: iPhone

Top Rated Comments

BryanElliott Avatar
85 months ago
You can't copy profits.
Score: 57 Votes (Like | Disagree)
kcirtap00 Avatar
85 months ago
no, profit is all that matters to apple.

innovation matters plenty to other companies who are making actual strides and doing different things.

Profit matters to Samsung too, they're just not good at it. Samsung couldn't innovate themselves out of a paper bag.
Score: 46 Votes (Like | Disagree)
kcirtap00 Avatar
85 months ago
I believe the whole screen on the edge was Sammy's thing.

Which is enormously useful from what I can tell. You know, cause when you have a full screen in front of you, you want to look at a tiny screen on the edge.
Score: 40 Votes (Like | Disagree)
HenryDJP Avatar
85 months ago
Samsung are the biggest hypocrites of any tech company and are tacky and classless. They fuel the bend campaign on the iPhone 6 Plus because of it's thinness. They create the Wall Huggers ad campaign to diss Apple for using built in battery and Voila! A new S6 is born and is a nothing short of a poor copycat of the iPhone 6 Plus. Karma Sammy. That's why your profits are down and people aren't wasting money on your overpriced Apple clone.
Score: 38 Votes (Like | Disagree)
applesith Avatar
85 months ago
iPhone has big screen options now. Galaxy no longer has replaceable battery or expandable storage. Time to watch iPhone gain even more switchers.
Score: 33 Votes (Like | Disagree)
TouchMint.com Avatar
85 months ago
This is good and not because I don't like Samsung it's good because they will have to innovate more and then apple will have to as well.
Score: 21 Votes (Like | Disagree)

Related Stories

studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
macos catalina legacy system extension alert

Apple Begins Warning Users That 'Legacy System Extensions' Won't Work With a Future Version of macOS

Wednesday March 25, 2020 9:53 am PDT by
Apple has shared a new support document that indicates kernel extensions — which it calls "legacy system extensions" — will not be compatible with a future version of macOS because they "aren't as secure or reliable as modern alternatives."System extensions are a category of software that works in the background to extend the functionality of your Mac. Some apps install kernel extensions, which...
General Spotify Feature

Spotify Pauses Plans to Add AirPlay 2 Support to iOS App [Update: Spotify Clarifies]

Friday August 6, 2021 9:07 am PDT by
See update at bottom of article Spotify this week confirmed that its plans to add AirPlay 2 support to its iOS app have been placed on indefinite hiatus. In an online discussion forum post, a Spotify representative said the streaming music service had been working on supporting AirPlay 2, but the company has paused the efforts "for now" due to "audio driver compatibility issues." The...
apple privacy

Apple Publishes FAQ to Address Concerns About CSAM Detection and Messages Scanning

Monday August 9, 2021 1:50 am PDT by
Apple has published a FAQ titled "Expanded Protections for Children" which aims to allay users' privacy concerns about the new CSAM detection in iCloud Photos and communication safety for Messages features that the company announced last week. "Since we announced these features, many stakeholders including privacy organizations and child safety organizations have expressed their support of...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
m1 macbook air

Kuo: Mini-LED MacBook Air Coming in Mid-2022

Thursday July 22, 2021 7:48 pm PDT by
Apple will release a new version of the MacBook Air around the middle of 2022, Apple analyst Ming-Chi Kuo said today in note to investors seen by MacRumors. The upcoming MacBook Air will feature a 13.3-inch mini-LED display, which would make it the second Mac to gain mini-LED technology after the 2021 MacBook Pro, which is rumored to include a mini-LED display and is expected to launch later ...
Apple Films Tom Hanks Finch First Look

Apple Original Film 'Finch' Starring Tom Hanks to Premiere November 5

Thursday August 12, 2021 8:52 am PDT by
Apple today announced that the original film "Finch," starring Tom Hanks in its titular role, will premiere on Apple TV+ on Friday, November 5 and shared a first-look image from the film. The first look at "Finch," shared by Apple. The film, which is anticipated to be an awards season contender, revolves around a man, a robot (played by "Get Out" actor Caleb Landry Jones), and a dog that form ...
whatsintheboxiphonexs

Apple's iPhone XS, XS Max and XR Won't Ship With Lightning to 3.5mm Headphone Jack Adapter

Wednesday September 12, 2018 12:58 pm PDT by
Since the headphone jack was removed from the iPhone with the launch of the iPhone 7, Apple has bundled iPhones with a Lightning to 3.5mm Headphone Jack Adapter for customers who continue to have 3.5mm headphones. With the launch of the iPhone XS, iPhone XS Max, and iPhone XR, Apple is discontinuing this practice and will not include the Lightning to 3.5mm Headphone Jack Adapter. On the...
macbook air m1 first benchmark

Apple Silicon M1 Chip in MacBook Air Outperforms High-End 16-Inch MacBook Pro

Wednesday November 11, 2020 4:43 pm PST by
Apple introduced the first MacBook Air, MacBook Pro, and Mac mini with M1 Apple Silicon chips yesterday, and as of today, the first benchmark of the new chip appears to be showing up on the Geekbench site. The M1 chip, which belongs to a MacBook Air with 8GB RAM, features a single-core score of 1687 and a multi-core score of 7433. According to the benchmark, the M1 has a 3.2GHz base...
iphone 13 teal with text

Apple Begins Preparation for iPhone 13 Production Ahead of Fall Launch

Monday June 28, 2021 3:29 am PDT by
We're just a few months away from when Apple is expected to reveal the 2021 iPhone, dubbed the "iPhone 13." In preparation for its launch, it has been pulling in shipments of different components needed to produce the new iPhones, according to a report from DigiTimes. In years past, Apple released its latest iPhone lineup, alongside a new Apple Watch, during a September event at Apple Park....