WSJ: ‘Samsung Estimates Operating-Profit Growth at 5 Percent, Short of Expectations’

Timothy Martin, reporting for The Wall Street Journal:

Sales of the company’s latest flagship device, the Galaxy S9, have been weak, as consumers keep their phones longer and remain unimpressed with the newest options.

Lee Seung-woo, a Seoul-based analyst at Eugene Investment and Securities, expects Samsung will ship about 31 million Galaxy S9 devices in 2018. That would mark a dramatic decline from just two years ago, when the Galaxy S7 became Samsung’s best-selling phone ever, with roughly 50 million shipments.

Imagine the hysteria if flagship iPhone sales dropped 40 percent in two years.

I’m not so sure that the S9 is particularly “unimpressive” compared to previous Samsung phones so much as that other high-end Android handsets have caught up. I think what’s happening to Samsung is what many thought would happen to the iPhone circa 2013 — they’re losing sales to “good enough” phones from a dozen other Android makers from around the world. Even the high-end Android market is turning into a commodity market.

iOS is the moat that separates Apple from the pack, just like MacOS is in the PC market. Samsung doesn’t really have a moat. If anything, their proprietary software is worse than the off-the-shelf Android from Google. What’s the argument for buying an S9 instead of, say, a Pixel or OnePlus or whatever else has a great display and camera?

Saturday, 7 July 2018