Samsung Profits Tumble as Apple Enters Large-Screen Phone Market and Low-End Options Thrive
Samsung's third quarter 2014 earnings are likely to disappoint as the company faces intense competition from both high-end and low-end competitors, even as Apple's newly launched iPhone 6 and 6 Plus are just starting to roll out. According to the Wall Street Journal, Samsung is expected to announce a quarterly operating profit drop of up to 62 percent in what may be its fourth consecutive quarterly decline.
Though it may see a marginal increase in smartphone shipments, Samsung's operating profit decline may be the result of lower handset selling prices and increased marketing costs as smartphone competition escalates.
Samsung’s smartphone business is facing intense competitive pressure at the low-end from Chinese handset makers, and at the high-end from the iPhone. With the iPhone 6, Apple essentially wiped out Samsung’s distinguishing feature: a big screen size. And with the jumbo iPhone 6 Plus, Apple has now entered into the “phablet” segment that Samsung pioneered.
While its mobile device division struggles, Samsung's components business is expected to increase 10 percent over the coming year, accounting for more than 40 percent of operating profits in 2015.
One of Samsung's main component customers is Apple, although the iPhone maker has cut back significantly on its usage of Samsung parts. One major move away from Samsung came with the main A8 chip used in the iPhone 6 and 6 Plus, with Apple turning to TSMC for the first time for chip production. Some industry sources believe Samsung to still be producing a portion of A8 chips, but so far it does not appear any have been seen in teardowns of the new devices.
Popular Stories
Apple turns 50 this year, and its CEO Tim Cook has promised to celebrate the milestone. The big day falls on April 1, 2026.
"I've been unusually reflective lately about Apple because we have been working on what do we do to mark this moment," Cook told employees today, according to Bloomberg's Mark Gurman. "When you really stop and pause and think about the last 50 years, it makes your heart ...
Apple plans to announce the iPhone 17e on Thursday, February 19, according to Macwelt, the German equivalent of Macworld.
The report, citing industry sources, is available in English on Macworld.
Apple announced the iPhone 16e on Wednesday, February 19 last year, so the iPhone 17e would be unveiled exactly one year later if this rumor is accurate. It is quite uncommon for Apple to unveil...
In the iOS 26.4 update that's coming this spring, Apple will introduce a new version of Siri that's going to overhaul how we interact with the personal assistant and what it's able to do.
The iOS 26.4 version of Siri won't work like ChatGPT or Claude, but it will rely on large language models (LLMs) and has been updated from the ground up.
Upgraded Architecture
The next-generation...
While the iOS 26.3 Release Candidate is now available ahead of a public release, the first iOS 26.4 beta is likely still at least a week away. Following beta testing, iOS 26.4 will likely be released to the general public in March or April.
Below, we have recapped known or rumored iOS 26.3 and iOS 26.4 features so far.
iOS 26.3
iPhone to Android Transfer Tool
iOS 26.3 makes it easier...
The iPhone 18 Pro Max will feature a bigger battery for continued best-in-class battery life, according to a known Weibo leaker.
Citing supply chain information, the Weibo user known as "Digital Chat Station" said that the iPhone 18 Pro Max will have a battery capacity of 5,100 to 5,200 mAh. Combined with the efficiency improvements of the A20 Pro chip, made with TSMC's 2nm process, the...
