Samsung Group Q3 earnings shows why Apple rules the world

Samsung, the world’s biggest smartphone company recently released a press release showing a collapse in its third quarter earnings. According to the report, Samsung’s operating profit is estimated at around 4.1 trillion won (2.40 billion pounds) – lower than the estimated forecast of Thomson Reuters, which is around 5.6 trillion won. This report also shows that it is Samsung’s weakest quarterly profit since the second quarter of 2011 and fourth consecutive decline in earnings per quarter.

Many experts believe that the decline in Samsung profits was caused by a number of factors. One of which is the fast growth of smartphones manufactured by local companies based in China and India. Both countries are now adapting an aggressive marketing and sales strategy thus eating the share of potential Samsung buyers.


Jan Dawson from Jackdaw Research shared this sentiment stating that “In China in particular, the Chinese brands are getting ever stronger and more competitive, and it will be hard for Samsung to regain momentum and set itself apart there without a radical shift in strategy.”

Though it seems like Samsung is losing its momentum, experts believe that there is still a chance for the Korean-based company to reclaim its place. Tom Kang of Counterpoint Research expressed a similar statement saying that “it still has time as that’s one of the advantages of being number one.”

Lee Seungwoo, an analyst from IBK Securities Co., emphasized that Samsung should focus more on its design policies as opposed to seeking stability. In response, Samsung disclosed “the company is preparing new smartphone lineups featuring new materials and innovative designs.

Last month, Samsung has released its Galaxy Note Edge smartphone and the response was rather positive due to its design (a curved side screen) and its features such as weather display, news, and apps that provide entertainment and information.

Though it has received a positive response, the limited supply for this smartphone is not enough to put back the momentum on Samsung. This is indeed crucial as Apple, the biggest rival of Samsung has just released the newest iPhone model: iPhone 6 and iPhone 6 Plus.