Samsung

Samsung is in a pickle and its newest phone isn’t helping

Samsung’s bet on a new, well-designed flagship phone isn’t paying off as well as the company had hoped.

The company told the Korea-based Yonhap News Agency that it has shipped 10 million units of the new Samsung Galaxy S6, which launched about a month ago. That number is down from the amount of units sold for a similar time period for Samsung’s last flagship phone, the Galaxy S5. Samsung sold 11 million Galaxy S5 phones during the first month of availability.

It’s important to note that these are shipments, not sales, for the Galaxy S6. It’s unclear how many people actually bought the Galaxy S6.

Samsung is in a pickle and its newest phone isn’t helping – Yahoo Finance.

In the end, you get what you deserve. Die SameSung!

How Apple, Inc. went thermonuclear on Samsung, erasing Androids primary profit center

Samsungs profit collapse was not principally due to Chinese phones flooding the market. IDC just reported in its smartphone market estimates that Samsung still leads the world in shipments and market share by a large margin, having shipped 78.1 million units, a YoY decline of just 8.2 percent.Samsung itself reported a sequential „slight growth in shipments” in its earnings release, but explained that „earnings declined QoQ as ASP decreased due to weak smartphone product mix and sales decrease put pressure on the cost structure.”

In other words, profits were down because average selling prices were down, because it was selling less profitable phones and because it was becoming even more expensive to build its most expensive phones due to a reduction in economies of scale. Removing any remaining mystery, Samsung flat out stated that its phone shipments in the quarter were „driven by mid to low-end products.”

via How Apple, Inc. went thermonuclear on Samsung, erasing Androids primary profit center.

iPhone 6 demand and my take on it

I’ve been trying (after about an hour of delay – wtf Apple??) to order from the UK Apple store a number of iPhones for me and my family today, and I watched closely the inventory on all the models.

The iPhone 6 Plus of 128 GB in gold and silver disappeared in a minute or two. Then after another 5 minutes the 6 Plus space grey was gone, with delivery times of 3-4 weeks.

Then, in about 30 minutes also the iPhone 6 (the smaller of the two) in 128 GB has been sold out.

Then, in another 30 minutes all the 6 Plus were gone, displaying delivery times of at least 7-10 business days, or 3-4 weeks.

After a few hours the 6-es were gone as well. Same for the German store.

In the US, you can still get a 6 on launch day, just not the 16 GB gold. The 6 Plus-es are all gone, with further deliveries in 3-4 weeks.

Conclusions:

1. Demand is very high, at least at launch, especially for the Plus and the higher capacities. If supply is not significantly tighter than last year (and I hope it isn’t, since they dropped the sapphire glass rumored to have been the problem for the Plus), we should have good launch numbers.

2. By launching two phones at the same time, Apple is repeating last year’s strategy of product portfolio. However, there are some important differences:

– pricing has gone up by 100$ for both 6 vs. 5C and for 6 Plus vs. 5S. This means at least +$80 in ASP and growing markups. Amazing news for the bottomline.

– the lower phone (6) is not an old product repackaged (as it was with 5C which had 5 internals). So the demand for it should be better, especially coming from those who despised the ugly big Android phones until yesterday.

– by having two new products with two new form factors, Apple is pushing its loyal base to order more to be able to use both (one for him and one for her, for example) and/or to upgrade quicker (ok, I’ll take this year the 6 but next year I really really have to take the 6S plus, just to see what I’ve been missing in that huge screen – or vice versa).

3. Tim Cook was just asked in an interview how comes that they’re now copying competitors’ ideas with the big screens. His honest answer was „by design” and “It’s an incredible opportunity for us to switch people from Android to iOS.”. Which it is indeed.

I would very much like to short Samsung right now. And I will also look into buying LEAPs for AAPL next week.

Analyst on Apple: Sell Now – WSJ

Analyst on Apple: Sell Now – WSJ.

This, plus the CelebGate scandal which was not well handled by Apple’s PR, plus the ugly stupid Galaxy Note Edge that Samsung launched today, all put pressure on AAPL.

I just bought Sep 19 102 calls and Jan 105 calls, I intend to sell them after Tuesday’s announcement, hopefully for a nice profit. Fibonacci support is at 97.21. Go AAPL!

 

Game On For Apple As Samsung Refuses To Change Its Smartphone Strategy – Forbes

Samsung needed to shake up the market today. Instead they unpacked a gimmick, a sixth attempt at a smartwatch, an interesting display tweak, and a phablet that ’does the same as last year’s model but with a slightly better spec sheet.’ I wanted to see a line-up that could turn Samsung’s financial performance around. I’m still looking.

With Samsung failing to impress, its chief rival Apple has an open goal for their announcements on September 9th. The other manufacturers at IFA now have an opportunity to become the chief challenger to the iPhone 6 range if they can capture the most buzz and momentum from Berlin.

Game On For Apple As Samsung Refuses To Change Its Smartphone Strategy – Forbes.