Sunday, December 8, 2013

rival smartphone makers like HTC and Sony have mounted a renewed challenge with their latest phones

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Samsung, the largest maker of consumer electronics, said Friday that it expects ez pass weaker profits and revenue, which analysts attributed to slower sales of high-end smartphones. This is a trend that also bedevils Apple, its main rival.
Samsung, the No. 1 maker of mobile phones, aims to Galaxy models at the top end of the market. Apple sells the iPhone to customers also. And while sales of smartphones continue ez pass to grow over all, the rate of increase for the more expensive devices are easing in recent months.
In the United States, more than 58 percent of adult consumers who own a mobile phone own a smartphone, according to comScore, a market research firm. Just three years ago, it was 20 percent.
rival smartphone makers like HTC and Sony have mounted a renewed challenge with their latest phones. But for Samsung, the real problem is that much of the growth in smartphone sales in the coming year will be at the lower end of the market, where Chinese manufacturers are gaining ez pass share. Samsung simply not the most appealing models for consumers. As smartphones become increasingly commoditized, prices will fall and profit margins will shrink.
"The concern is the future of the smartphone market, ez pass which is already filled to the upside," said CW Chung, an analyst at Nomura Securities. "The smartphone industry is becoming more like the computer industry," in which consumers purchase their decisions mostly on price, despite ez pass efforts by manufacturers to make their products stand out.
While many companies would do such a growth rate, the financial forecast disappointed ez pass analysts, ez pass who on average had expected Samsung reported ez pass an operating profit of more than 10000000000000 in the April-June quarter to put envy.
Even before the news on Friday, some analysts downgraded their sales and profit forecasts for Samsung. Investors heeded, and Samsung Electronics shares are down about 17 percent since the beginning of the year. (Apple's stock, about 21 percent in the same period.) Samsung shares fell 3.8 percent on Friday in trading in Seoul.
In April, Apple reported its first year-over-year decline ez pass in quarterly earnings in a decade, as iPhone sales showed signs of slowing. The company sold 37.4 million iPhones in its fiscal second quarter, or about 2.88 million phones a week.
Samsung's Galaxy S4 got off to a faster start than its predecessor model, the S3. It took only 60 days 20 million phones S4, a slower pace than the older iPhone, ez pass but still much faster than selling the 100 days it took Samsung Galaxy ez pass S3 that many phones to sell.
While Samsung ez pass is also the world's ez pass largest TV manufacturer, profit margins in the business are squeezed by fierce competition. So Samsung remains ez pass heavily dependent on its mobile division, which provided three-quarters of the company's operating profit in the first quarter.
"With Samsung, the market has gotten used to upside surprises," said Chung at Nomura said. "But ez pass the last quarter was abnormal. ez pass People need to focus adjust ".
In March, the Samsung Galaxy S4 amid great fanfare at an event at Radio City Music Hall in New York. While the new model is selling ez pass well in the United States, now at a carrier-subsidized ez pass price of $ 200, it has not done so than some analysts had expected. ez pass It sold, for example, in China for about $ 850.
The cost of Samsung's heavy marketing - it's a bigger global advertisers as Coca-Cola - eating, profit margins. It also reduces the cost of opening Samsung stores in more than a thousand Best Buy stores in the United States.
The high-end phone makers faced a different profit margin problem. If a lower-priced smartphones more technologically advanced and the benefit of the higher-priced ez pass smartphones reduced, more people moved to the lower priced phones to increased price pressure on companies like Samsung or Apple.
Mark Newman,

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