iPhone 14 Pro helps Apple dominate 2022 smartphone scene

[FFR]

Ouch! That’s ugly. Some may think, despite the epic YoY drop, half a billion is still great. No it’s not when you’re a company with 280,000 employees, presumably Semi is approaching 100k of those. That is far from a financially healthy 3 months. It is actually unsustainable at that employee level.

There was a rumor Samsung Semi would be going after Apple Silicon business. So Semi has at least a modicum of hope on the horizon .

Problem with vertical integration, when one domino falls it takes the rest with it.

This just in: first it was Samsung with the 70% drop in profits, now the second largest android oem is crumbling. Sales down 40% and operating profits down 60%.

 

[Up_And_Away]

Problem with vertical integration, when one domino falls it takes the rest with it.

This just in: first it was Samsung with the 70% drop in profits, now the second largest android oem is crumbling. Sales down 40% and operating profits down 60%.

I hate seeing working people lose their jobs but it’s the cold reality especially in tech.

Definitely correct once again, and the V. Integration/Android world skates on relatively thin ice to begin with. When we look at smartphone industry overall profit, you see Apple owns it — more aptly put they utterly dominate it. These two worlds, Android and Apple, may both make up the smartphone market but the business fundamentals between the two are so starkly different. From a user perspective, it’s one main reason why Apple product fans should NEVER want to see Apple selling cheap TV streaming sticks and budget smartphones and equivalent cheap Chromebook laptops. Once a company is on that teat it rarely if ever gets off it. The company fundamentally is changed forever. You are now going to more and more shove razor thin or zero margin inventory to keep that revenue (not profit) ball bouncing… i.e. always skating on thin ice.

And what I just described is pretty much the Android portion of the smartphone market. Getting squeezed on premiums by a fundamentally and vastly financially healthier Apple, getting squeezed by economics on their razor thin heavy inventory pushing budget phones.

 

[FFR]

Well there it is, Samsungs operating profits for q1’23 has collapsed by 96%.

Even lg managed to beat Samsung, first time in 14 years . I guess lg secret was to stop making android phones that no one wanted .

 

[Up_And_Away]

Well there it is, Samsungs operating profits for q1’23 has collapsed by 96%.

Even lg managed to beat Samsung, first time in 14 years . I guess lg secret was to stop making android phones that no one wanted .

96%?? JHFC!
Apple 2022 made around 25 billion earnings per quarter, averaged. Samsung’s results would be the equivalent of Apple announcing quarterly earnings of 100 million, not 25 billion. The stock market would go into a panic, Apple stock would plunge, likely every market sector would drop if not plunge.

Thanks for putting the LG remark up there, it’s important. The despicable financial media likes to say Samsung’s drop is simply because of economic conditions that are hitting everyone. Huh, LG was hit but held up better. Huh, Apple was hit but saw about 4% earnings drop. So yea, obviously the issue with Samsung is simply the economic conditions. Except I’m sure the decent people of financial media missed the important point in there. 19% revenue drop vs 96% earnings(profit) drop. That kind of 19%-96% disparity strongly suggests one of the main reasons for the revenue drop is due to Samsung heavily betting on moving inventory. Sell the cheap stuff en masse, discount it, discount the premium devices, sell some at a loss, it doesn’t matter as long as we hit around X level of inventory being moved. But what happens under that plan when you miss 19% below that X inventory shipped number? Your earnings utterly collapse.

I could have been succinct by cutting a lot of the above out in favor of simply saying “skating on thin ice” .

 

[FFR]

96%?? JHFC!
Apple 2022 made around 25 billion earnings per quarter, averaged. Samsung’s results would be the equivalent of Apple announcing quarterly earnings of 100 million, not 25 billion. The stock market would go into a panic, Apple stock would plunge, likely every market sector would drop if not plunge.

Thanks for putting the LG remark up there, it’s important. The despicable financial media likes to say Samsung’s drop is simply because of economic conditions that are hitting everyone. Huh, LG was hit but held up better. Huh, Apple was hit but saw about 4% earnings drop. So yea, obviously the issue with Samsung is simply the economic conditions. Except I’m sure the decent people of financial media missed the important point in there. 19% revenue drop vs 96% earnings(profit) drop. That kind of 19%-96% disparity strongly suggests one of the main reasons for the revenue drop is due to Samsung heavily betting on moving inventory. Sell the cheap stuff en masse, discount it, discount the premium devices, sell some at a loss, it doesn’t matter as long as we hit around X level of inventory being moved. But what happens under that plan when you miss 19% below that X inventory shipped number? Your earnings utterly collapse.

I could have been succinct by cutting a lot of the above out in favor of simply saying “skating on thin ice” .

96% decline in profits is way past thin ice .

Samsung declined 31% in q3, and 69% in q4, during their fall foldable launch and 96% during the winter launch of the s23. Its a sinking ship.

You have to bear in mind these loses can’t even be offset by Samsung display which has been making incredible profits during the same period, due to iPhone display sales.

Samsung can’t even give their phones away, inventory has been piling up since November ‘22.

 

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96% decline in profits is way past thin ice .

Samsung declined 31% in q3, and 69% in q4, during their fall foldable launch and 96% during the winter launch of the s23. Its a sinking ship.

You have to bear in mind these loses can’t even be offset by Samsung display which has been making incredible profits during the same period, due to iPhone display sales.

Samsung can’t even give their phones away, inventory has been piling up since November ‘22.

Apple is not perfect but if there is a hardware selling company out there that knows how to keep fluctuating order levels filled while keeping inventory low, Apple is that company. Even when I was with them back in the day, our just in time ability was usually A+. There was always a heavy emphasis on low inventory.
Not surprising to see Samsung riding with that much inventory. As mentioned, these kinds of outsized earnings drops relative to revenue is very tellingly on their corporate business strategy. But! There is an upside specifically for the cognitive reasoning challenged (just kidding) who opt for a Samsung, they might be able to find a deal on a Galaxy where Samsung will pay you to take it. . Riding with high inventory levels is usually the third rail to corporate philosophy and Wall Street.

Yep, no chance Samsung Display (iPhone fueled) success can offset this. Samsung Electronics two divisions that make up the most revenue are Mobile and Semi. If those two sink? There financials are going to crater. I’d bet, though not sure, it would be like Apple iPhone and Services categories cratering but iPad has a big upswing. That’s great for iPad but iPhone and Services revenue are way too big to be made up by a much smaller revenue earner.

No kidding, Samsung Display should be going after all Apple’s business. I read Apple is looking elsewhere (LG, etc) and think “why isn’t Samsung doing everything they can to expand Apple’s business”). To that, Samsung Semi should be going after Apple Silicon too. They’re not in the right position at this very moment but they are one of the biggest foundries in the world. Hundreds of millions of SOCs (higher revenue chips) along with even more legacy chips, plus the chance at the upcoming Apple modem chip. Plus this way they can now honestly say they are building the best smartphones in the business.

 

[phlamethrowre]

Seems there might be a racial motivation for all this Samsung hate. It’s very unbecoming.

 

[FFR]

Well there it is, Samsungs operating profits for q1’23 has collapsed by 96%.

Even lg managed to beat Samsung, first time in 14 years . I guess lg secret was to stop making android phones that no one wanted .

From a couple posts up .

“Lg (another Korean company) posted profits for the first time in 14 years”.

 

[FFR]

Apple is not perfect but if there is a hardware selling company out there that knows how to keep fluctuating order levels filled while keeping inventory low, Apple is that company. Even when I was with them back in the day, our just in time ability was usually A+. There was always a heavy emphasis on low inventory.
Not surprising to see Samsung riding with that much inventory. As mentioned, these kinds of outsized earnings drops relative to revenue is very tellingly on their corporate business strategy. But! There is an upside specifically for the cognitive reasoning challenged (just kidding) who opt for a Samsung, they might be able to find a deal on a Galaxy where Samsung will pay you to take it. . Riding with high inventory levels is usually the third rail to corporate philosophy and Wall Street.

Yep, no chance Samsung Display (iPhone fueled) success can offset this. Samsung Electronics two divisions that make up the most revenue are Mobile and Semi. If those two sink? There financials are going to crater. I’d bet, though not sure, it would be like Apple iPhone and Services categories cratering but iPad has a big upswing. That’s great for iPad but iPhone and Services revenue are way too big to be made up by a much smaller revenue earner.

No kidding, Samsung Display should be going after all Apple’s business. I read Apple is looking elsewhere (LG, etc) and think “why isn’t Samsung doing everything they can to expand Apple’s business”). To that, Samsung Semi should be going after Apple Silicon too. They’re not in the right position at this very moment but they are one of the biggest foundries in the world. Hundreds of millions of SOCs (higher revenue chips) along with even more legacy chips, plus the chance at the upcoming Apple modem chip. Plus this way they can now honestly say they are building the best smartphones in the business.

The thing about Samsung semi

 

[Up_And_Away]

From a couple posts up .

“Lg (another Korean company) posted profits for the first time in 14 years”.

I forgot about that, LG discontinuing smartphones. They did and it may be one of the reasons they saw an uptick to profit. Also, though it is always uncertain with Apple’s secrecy, iPhone 14 pro uses (and other Apple products) some LG displays. I wonder if LG is supplying more displays to Apple than is suspected. That could account for a bit of an uptick too. My hunch is Apple wants LG to do a lot more.

Funny read on Samsung Semi. Hard to believe Samsung could/would be this potentially inept on Semi. I can’t say if it’s indicative of anything but when you’re one of the biggest Semi and Foundry companies on the planet, but you have to go to a third party Semi to produce your flagship smartphone SOCs, that ain’t a good sign. Apple Semi can produce the best mobile SOC with TSMC as the foundry. Qualcomm can produce a near the best mobile SOC with TSMC/others as the Foundry. A functional Samsung Semi division should have just about as good as there is for mobile SOCs…but they don’t. Ouch.

 

[FFR]

I forgot about that, LG discontinuing smartphones. They did and it may be one of the reasons they saw an uptick to profit. Also, though it is always uncertain with Apple’s secrecy, iPhone 14 pro uses (and other Apple products) some LG displays. I wonder if LG is supplying more displays to Apple than is suspected. That could account for a bit of an uptick too. My hunch is Apple wants LG to do a lot more.

Funny read on Samsung Semi. Hard to believe Samsung could/would be this potentially inept on Semi. I can’t say if it’s indicative of anything but when you’re one of the biggest Semi and Foundry companies on the planet, but you have to go to a third party Semi to produce your flagship smartphone SOCs, that ain’t a good sign. Apple Semi can produce the best mobile SOC with TSMC as the foundry. Qualcomm can produce a near the best mobile SOC with TSMC/others as the Foundry. A functional Samsung Semi division should have just about as good as there is for mobile SOCs…but they don’t. Ouch.

Indeed, lg was posting a loss for 14 years, until they shut down their android phone business. Android almost took lg down with it.

Rumor is lg display is responsible for fabricating apples new oled hybrid display for iPads and macs.


Regarding Samsung semi, they were only competitive when they where stealing tsmc ip, but a couple of lawsuits later and they stopped. Samsung semi foundry has been a complete mess since.


I guess Samsung is failing in korea as well. No foldables or flagship Samsungs on the list. But plenty of flagship iphones . Bear in mind this was before Apple Pay was launched

I guess koreans are not as racist as some poster tried to imply in this thread.

 

[Up_And_Away]

Indeed, lg was posting a loss for 14 years, until they shut down their android phone business. Android almost took lg down with it.

Rumor is lg display is responsible for fabricating apples new oled hybrid display for iPads and macs.


Regarding Samsung semi, they were only competitive when they where stealing tsmc ip, but a couple of lawsuits later and they stopped. Samsung semi foundry has been a complete mess since.


I guess Samsung is failing in korea as well. No foldables or flagship Samsungs on the list. But plenty of flagship iphones . Bear in mind this was before Apple Pay was launched

I guess koreans are not as racist as some poster tried to imply in this thread.

The racist comment from another poster isn’t even worth responding to. Easier to just note they’re words are to be disregarded.

Look forward to hearing more of what LG does for Apple. Samsung gets some credit here, they’ve previously been able to deliver the Display goods for Apple. LG growth means, if nothing else, it makes Samsung have to be better. Good for us consumers.

That South Korean best selling phone list, who is the source?

 

[FFR]

The racist comment from another poster isn’t even worth responding to. Easier to just note they’re words are to be disregarded.

Look forward to hearing more of what LG does for Apple. Samsung gets some credit here, they’ve previously been able to deliver the Display goods for Apple. LG growth means, if nothing else, it makes Samsung have to be better. Good for us consumers.

That South Korean best selling phone list, who is the source?

That poster is a bit strange, don’t know why he would call Koreans racist for preferring iPhones.

Samsung display gets credit, Samsung mobile and Samsung semi not so much.

A Samsung leaker on Twitter

Looks like Apple Pay is a hit in Korea with over a million users in the first 22 hours, and Samsung is now worried. I guess apples new Gangnam store swarming with new customers wasn’t enough.

 

[Up_And_Away]

That poster is a bit strange, don’t know why he would call Koreans racist for preferring iPhones.

Samsung display gets credit, Samsung mobile and Samsung semi not so much.

A Samsung leaker on Twitter

Looks like Apple Pay is a hit in Korea with over a million users in the first 22 hours, and Samsung is now worried. I guess apples new Gangnam store swarming with new customers wasn’t enough.

Great information as always.
Samsung Pay (or whatever other names such as Google pay) can’t/won’t keep up with Apple Pay, it’s a foregone conclusion. This goes back to overall corporate strategy. Samsung went after every market and surprise! (surprise to no one) revenue/business would inevitably drift toward relying on the extreme volume-low budget end. Now consider the consumer who would most likely opt for a Samsung Pay or Apple Pay? It is much more the kind of customer Apple corporate strategy overall aims for, while it is only a small slice of Samsung’s. And that’s not even factoring the superiority of Apple Pay.

There’s nothing inherently wrong with the Walmart approach (extreme volume-low budget-small margins). But when you move into that business strategy, getting the higher discretionary income consumer to go with your brands and services is going to wane.

 

[phlamethrowre]

That poster is a bit strange, don’t know why he would call Koreans racist for preferring iPhones.

Samsung display gets credit, Samsung mobile and Samsung semi not so much.

A Samsung leaker on Twitter

Looks like Apple Pay is a hit in Korea with over a million users in the first 22 hours, and Samsung is now worried. I guess apples new Gangnam store swarming with new customers wasn’t enough.

I meant the members on this thread hating on Samsung and delighting in their perceived troubles (mainly YOU) seem to be prejudiced against Asians. You love you some white American Apple but love to hate on an Asian company for no apparent reason. Just wondering if maybe it’s because they don’t look like you.

 

[Annie_M]

Frankly, I don’t think that disliking products manufactured by any company is racist. Let’s stay on topic please and refrain from slugging personal insults.

 

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I meant the members on this thread hating on Samsung and delighting in their perceived troubles (mainly YOU) seem to be prejudiced against Asians. You love you some white American Apple but love to hate on an Asian company for no apparent reason. Just wondering if maybe it’s because they don’t look like you.

Umm, wow. FFR, keep on keepin on with the bad Samsung news from this thread’s OP as well as other information on Samsung (such as the around 90% profit drop. A staggering unbelievable cataclysmic profit drop).

Apologies Annie_M, your post regarding staying on topic is fully understood.

 

[FFR]

Boom . Q1 numbers are in with apple at 21% and Samsung 22%. Samsung down 2% you and the iPhone up 3%.

Not to mention apple’s new store in India. I guess all those Indians switching to iPhone will now be branded racist because they didn’t buy a samsung.

I guess samsung display is also racist giving priority to apple and not Samsung mobile.

Edit: just take a look at that the size of that crowd.

 

[FFR]

Umm, wow. FFR, keep on keepin on with the bad Samsung news from this thread’s OP as well as other information on Samsung (such as the around 90% profit drop. A staggering unbelievable cataclysmic profit drop).

Apologies Annie_M, your post regarding staying on topic is fully understood.

Not going anywhere

A birdie has informed me, 2023 is going to be devastating to Samsung mobile.

 

[Up_And_Away]

Boom . Q1 numbers are in with apple at 21% and Samsung 22%. Samsung down 2% you and the iPhone up 3%.

Not to mention apple’s new store in India. I guess all those Indians switching to iPhone will now be branded racist because they didn’t buy a samsung.

I guess samsung display is also racist giving priority to apple and not Samsung mobile.

Edit: just take a look at that the size of that crowd.

Understandably to the average reader, they’d see the 22 vs 21 percent and think “not really a big change or difference”. In reality it is massive.
First, Apple sells nothing but premium except a small percent of SE which is almost premium priced. OTOH Samsung sells a majority of their phones in the budget market. So Samsung may have lost 2% of the entire overall phone market but their loss in premium sales was probably near 10%.

Secondly, these millions of added iPhone users are overwhelmingly going to be ‘for life’. The Apple eco is like the Eagles song Hotel California. “You can check out anytime you like but you can never leave”. Samsung and others do not have the luxury to fall down in the premium market. Once they move to iPhone, it is hell to pay to even have a chance to get them back.

Lastly, see that pic of the throngs at the Apple Store? That’s years of protecting the brandname. That’s years passing up budget TV streaming sticks, 199$ iPhones, 300$ Apple version of Chromebook, 99$ iPad lite as well as an Apple Toothbrush and an Apple Dustbuster. Exclusivity of products, design focused on a small group of products. That gives you a chance at crowds. A toothbrush and vacuum company that also sells 75 smartphone models? Good luck getting a crowd.