Samsung Merging Its Two Main U.S. Subsidiaries

CommanderFrank

Cat Can't Scratch It
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Facing declining overall profits, Samsung has made the decision to combine its two major United States subsidiaries into one corporation. The new combined operation will be known as Samsung Electronics America.

Samsung has also said it will narrow its smartphone product line in an effort to improve the unit’s profitability.
 
Didn't really know Samsung was hurting. Interesting.

They're aren't losing money but their profit margin took a massive hit last quarter, down 60% from the previous quarter. While still in the black, that's the kind of drop that has to be responded to quickly and effectively. I think Samsung could certainly benefit in streamlining its phone lineup. Currently it's almost overwhelming with products that are competing among themselves.
 
I would just be happy if they would be the first company to stop the whole exclusive carrier phone nonsense.
 
I would just be happy if they would be the first company to stop the whole exclusive carrier phone nonsense.

I would be happy if they got rid of Touchwiz, and didn't let carriers load their proprietary crap onto their phones. I have never used any Sprint apps to do anything. I doubt I'm about to start.
 
Totally not surprised. A lot of their profits were coming from Android-based devices and even non-technical people are getting smarter about how revolting Google is as a company.
 
Totally not surprised. A lot of their profits were coming from Android-based devices and even non-technical people are getting smarter about how revolting Google is as a company.

One of the biggest issues facing Samsung being reported is the influx of super cheap Android devices in China and other emerging markets. Like laptops and desktops, anyone other than Apple is having a hell of a time with margins in the mobile market. Samsung outside of Apple had been the only player that doing at least decently in the margins department, but that seems to have evaporated.
 
One of the biggest issues facing Samsung being reported is the influx of super cheap Android devices in China and other emerging markets. Like laptops and desktops, anyone other than Apple is having a hell of a time with margins in the mobile market. Samsung outside of Apple had been the only player that doing at least decently in the margins department, but that seems to have evaporated.

You're always blaming the Chinese for your problems. I think it's time that people living in the US take responsibility and put blame where it belongs, on the people living in southern states where its still like socially acceptable to watch outdoors shows. If you wanna point fingers at the reason why we can't have nice things and why the British think we're all kinda stupid, well there you go.
 
You're always blaming the Chinese for your problems. I think it's time that people living in the US take responsibility and put blame where it belongs, on the people living in southern states where its still like socially acceptable to watch outdoors shows. If you wanna point fingers at the reason why we can't have nice things and why the British think we're all kinda stupid, well there you go.

Why would I hate China? I l like plates.
 
This is what happens when you try to make it up in volume.

Sell at Apple's prices and profits will soar.
 
How long before Samsung marketing uses the phrase "SEA change"? :)

As for Samsung selling at Apple's prices, they pretty much are trying to do that. The cost of goods vs retail price, and profit margins on a Galaxy S/Note/Tab devices are very comparable to Apple's, and have been since the first Galaxy.

What's happening to Samsung is very very reminiscent of what happened to HTC a few years ago, in the smartphone arena. You can also draw a lot of parallels with the PC industry, or the home electronics industry.

Where they mostly screwed up (and where HTC sort of got a clue finally, though maybe too late) is that they had too damned many devices, too much shotgun/throw it against the wall products, and banking on the flagship Galaxy S5/Note profits to subsidize the rest of the product line, basically trying to buy low-end market share (and hopefully move those low-end customers up to high-end/high-profit Samsung devices eventually).

But they had to deal with very good flagship competition outside of Apple in this last product cycle. Sony, LG, HTC and Motorola came out guns blazing with well-made, competitive flagship devices that stacked up very well to the Galaxy S5, and they also paid more attention to consumers asking for more "premium" materials or design, which is sort of a big deal with flagship product buyers.

Plus they had to deal with their own success...for many, there's no real compelling reason to ditch a GS4 over a GS5, from real-world performance or styling. Even the GS3 is still a very capable device.

TL;DR Samsung bet the farm on people moving to the GS5, and built too damned many of them...warehouses are full of them, months after release, while at the same time they were churning out millions of cheaper devices that no longer had the flagship profit umbrella. Their bottom line got hurt, a lot.

And Apple? They just keep making two or three high margin phones and two high margin tablets, and don't worry about the low-margin market. They've never been down in those trenches, and don't ever want to be. They're happy letting the Asian manufacturers try to kill each other fighting down there.
 
You're always blaming the Chinese for your problems. I think it's time that people living in the US take responsibility and put blame where it belongs, on the people living in southern states where its still like socially acceptable to watch outdoors shows. If you wanna point fingers at the reason why we can't have nice things and why the British think we're all kinda stupid, well there you go.

What is wrong with outdoor shows?
 
Samsung is hurting because their low cost phones aren't being bought in a lot of other markets due to the emergence of cheap China phones.

It's not just Samsung hurting.
 
And Apple? They just keep making two or three high margin phones and two high margin tablets, and don't worry about the low-margin market. They've never been down in those trenches, and don't ever want to be. They're happy letting the Asian manufacturers try to kill each other fighting down there.

There is one chink in Apple's high margin hardware machine, the iPad. While tablet growth has slowed dramatically the market is still expected to grow about 7% this year. Meanwhile the iPad is expected to see its first ever year-over-year sales decline. Without the subsidies that phones enjoy I think the days of significant growth of $500 media consumption focused mobile OS tablets are over.

While the higher end larger tablet market is niche I expect Apple to launch a 12"+ next year. I know some Apple folks don't think that's the case but Apple isn't going to play the price game while going for larger margins in smaller volume is exact Apple's game.
 
That's the problem with building a product so good with future proofing that people have less incentive to upgrade. Samsung's 2012 Note II has 2GB DRAM, precision pen, AMOLED, etc. that a lot of new flagship devices still lack going into 2015. Mobile is starting to mirror PC with longer upgrade cycles. Good for consumers but bad for Samsung except 2015 is looking to be prime for an upgrade cycle. They could improve sales by touting mobile as a replacement for laptop and desktop with enhanced Smartdock driving 4K display at 60Hz. ARM A57 on 14nm will cause more trouble for Intel considering a ~2W Exynos 4412 scores ~800 in RAR compared to 80W Xeon 5160 at ~1300.
 
They could improve sales by touting mobile as a replacement for laptop and desktop with enhanced Smartdock driving 4K display at 60Hz. ARM A57 on 14nm will cause more trouble for Intel considering a ~2W Exynos 4412 scores ~800 in RAR compared to 80W Xeon 5160 at ~1300.

It would seem that this year has kind of taken a step back from the notion that mobile OS tablets are good replacements for desktops and laptops. I'm sure Samsung (and Apple as I've mentioned earlier) would love to sell higher end tablets at higher cost and margins. There is the Galaxy Note 12.2 that was aimed at this market. Not sure how well it's been received but I'm guessing the Surface Pro 3 is leading in this market, as niche as it is.

While Windows as tablet platform has a very weak app ecosystem, mobile OS tablets as laptops and desktop replacements have a similar problem. There's lots of lightweight apps and sure tablets can replace laptops and desktops for those that don't need the power of a desktop OS and or its apps. But when it comes to productivity I think very few would swap a Surface Pro 3 with a Note 12.2.
 
Only thing keeping x86-64 alive is the software base otherwise ARM is much more efficient, cooler, physically smaller, cheaper and better experience. Also, x86-64 is already maxed out at 14nm for the time being while ARM is at 28nm with huge room for improvement with recently announced 14nm production. x86-64 has already lost the mobile market and its laptop and desktop market will be challenged in 2015. Seems like they already see it coming with preemptive introduction of low cost $200 x86-64 laptops.
 
Totally not surprised. A lot of their profits were coming from Android-based devices and even non-technical people are getting smarter about how revolting Google is as a company.

You sound like a crybaby Windows Phone user. Shouldn't you be celebrating Candy Crush finally coming to your platform after 2 long years?
 
I would be happy if they got rid of Touchwiz, and didn't let carriers load their proprietary crap onto their phones. I have never used any Sprint apps to do anything. I doubt I'm about to start.

As long as you pay for your phone via your phone bill, you'll put up with the phone company's terms.
 
You're always blaming the Chinese for your problems. I think it's time that people living in the US take responsibility and put blame where it belongs, on the people living in southern states where its still like socially acceptable to watch outdoors shows. If you wanna point fingers at the reason why we can't have nice things and why the British think we're all kinda stupid, well there you go.
How is Samsung's problem a US problem? Be careful about throwing around who's "kinda stupid'.
 
Only thing keeping x86-64 alive is the software base otherwise ARM is much more efficient, cooler, physically smaller, cheaper and better experience.

The software base as you put it isn't an insignificant problem. If you look at the platforms that are struggling today from Windows Phone to desktop Linux, the core of the reason is all about the software base.

Seems like they already see it coming with preemptive introduction of low cost $200 x86-64 laptops.

So that takes ARM being cheaper out of the equation and little desktop level of productivity software to boot. Plus who really looks at Android and iOS tablets as productivity devices these days? 2014 was a year of rightsizing I believe. The idea that we'd all be able to dump our desktops and laptops for mobile OS smartphones and tablets is all but dead. Many people these days can be just fine with smartphones and/or tablets as their only computing devices. But the realization that not everyone, and not everyone being hundreds of millions of people across the globe, I think struck people particularly in 2014.
 
You will need a large ARM core to compete with x86 on just about anything worth while. It I'd comical how ARM can't scale to that size. It's one if the reasons they don't try anything outside ultra mobile.
 
You sound like a crybaby Windows Phone user. Shouldn't you be celebrating Candy Crush finally coming to your platform after 2 long years?

Actually, I'm a not cell phone owner at all and I like using the extra money to make amazing compound interest.

How is Samsung's problem a US problem? Be careful about throwing around who's "kinda stupid'.

Well um, if you aren't literate enough to read the post you quoted and comprehend the stuff in it, maybe I'm on to something. :D
 
Well um, if you aren't literate enough to read the post you quoted and comprehend the stuff in it, maybe I'm on to something. :D
As if Samsung America is a significant or independent entity from Samsung? Or Samsung's phone's and decision to have excessive numbers of models came from America?
 
As if Samsung America is a significant or independent entity from Samsung? Or Samsung's phone's and decision to have excessive numbers of models came from America?

*headdesk* I lost hope for humanity.

....

Unleash the Robotic Lawyer Kittens, their funny bones are indeed lost to them!
 
You're always blaming the Chinese for your problems. I think it's time that people living in the US take responsibility and put blame where it belongs, on the people living in southern states where its still like socially acceptable to watch outdoors shows. If you wanna point fingers at the reason why we can't have nice things and why the British think we're all kinda stupid, well there you go.

th
 
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