Quarter one of 2015 Sees Samsung on Top Again
Quarter one has ended and of course it is time again that manufacturers publish their own quarterly results. This time, Samsung seems to be doing well as they just moved about 83.2 million units compared to 89 million units in the same quarter last year and 74.5 million units of smartphone last quarter. This would mean that in this quarter Samsung is back on top of the smartphone industry overtaking Apple who made 61.5 million shipments the past quarter. Of course these two giants still eclipse the third placer Lenovo-Motorola who merely shipped 18.8 million units of smartphone. In terms of percentage Samsung holds 24.1% of the market in this quarter while Apple holds 17. 7% of shares in the industry in the quarter. It does seem that Samsung made a comeback this year though after a terrible year in 2014. That is however not the case.
As reported by Samsung they have scored a net profit of KRW4.63 trillion (MYR15.4 billion) in the quarter one of this year. That is 39% of drop compared to last year. This lines up with the South Korean giant’s expectations but was worse that what was expected by plenty of industry experts suggest. On another note in Japan, Samsung still has not been able to make any major breakthroughs even with their brand new Samsung Galaxy S6 and S6 Edge. Although touted as Samsung’s highest built quality smartphone by far and seems to be one of the most desirable smartphone in the world as of now They rank 30th on the sales ranking in Japan, worse than when they were launched in 17th place the week before. As interesting as it is Apple is actually ranked 6th in the Japan market and holds plenty of market share in Japan compared to Samsung’s measly 5%. Globally also Samsung took a hit in the tablet market.
Actually not just Samsung, Apple too. Both big brands actually saw a serious dip in their market share in the tablet market. Their previous dominance in the tablet market is of course damaged by none other than their Chinese competitors that could offer cheaper alternatives. Samsung and Apple used to own half the market share in the first quarter of last year at 22.6% and 28.9% respectively. This year though Samsung’s share declined to 17% and Apple’s 24.3% in total they held only about 41.3% of the share currently. Some of those lost percentage ended up in Lenovo and Huawei’s backyard giving them a total of 5.3% and 2.4% of shares respectively; and increase of 1.2% and 1.5% each brand. The rest of the lost shares goes to what people call “white box” tablets; tablets that has not specific recognisable brands that are powered by Android. In fact they now hold 28.4% of market share which is an increase of 2.7% and now making them a larger market share holder than both Apple and Samsung.
Samsung is not the only one in deep waters though as Sony has just reported a net loss of JPY126 billion (MYR) in the first quarter itself despite announcing an operating profit of JPY28 billion (MYR). They also just released their forecast and it looks like a negative will always be plaguing Sony over the next year. In fact they are expecting that their revenue for this year to be lower than last year’s at JPY1,310 billion (MYR) by 7.1%. Out of the negativeness though they are expecting to lower the operating loss numbers from JPY217.6 billion to JPY39 billion by the end of the year. The mobile’s division outlook, however bleak is expected not to affect much of Sony’s other businesses though as they expect a total net income of JPY140 billion which would be a record profit after three years.
The next quarter does seem promising for both Samsung and Xiaomi as both has just released their latest flagship line ups for their own markets. Especially for Samsung and their Galaxy S6 and S6 Edge lines of phones. However competition can only get stronger and could drive the market in different ways. Would Samsung’s two new flagship be their saviour to the turmoil that they have been facing for a while now? We certainly do not know yet but quarter two is already coming to a close, we would expect to see some interesting development now that Android M would be in play.