Samsung to launch two high-end smartphones after operating profit drops 25%

In the wake of a poor performance last quarter, Samsung is looking to impress consumers with two high-end smartphone launches in the upcoming months.

Senior vice president of Samsung's mobile communications business Hyun-Joon Kim, hints the product will be innovative and will contain a large-screen. In a conference call with analysts, the executive said the second phone will be "a very attractive new model that uses new materials and new displays". Mid to low-end range models will also be launched alongside the high-end flagship in order to compete with rival companies.

Judging by the little detail we have been given, it is likely the South Korean company will add to its Galaxy Note range. There is also a possibility that flexible screen technology will be incorporated into its product, as hinted by the company in the past.

CNET reports Samsung will also be looking to expand their wearable technology line-up. By offering more products alongside the existing Gear series, the company hope to outshine Apple’s highly anticipated iWatch which is also expected to be released later this year.

The announcement comes after Samsung announced a operating profit drop of 25% between April and June, partly due to a weak demand of their S5 Galaxy phone when compared to a year ago. Analysts claim their flagship phone sold less units than the iPhone 5S during its launch month, despite their huge marketing budget

Source: CNet, WSJ Image via Talk Android

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43 Comments

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I agree.

Why do companies think they will ALWAYS grow? Somewhere along the line it will slow and profits won't be as big as the last year.
If they go back to releasing a new phone every two years, not only will they catch those people on silly 24 month contracts, they will have something worthwhile upgrading to.

Samsung designs are based around Marketing and what they think the consumer wants. Samsung thinks the end user wants all these techie new sensors, they think thats high end. I'll say this again but I think there is a huge difference in what the Asian counties, European Countries and American want in terms of phone designs. Samsung is all about bloating phones with as much new tech as possible, with little thought on the implementation or software. European/Americans typical want more minimal. As part of my job I study what consumers buy, and you can see why at least over here in the U.S Apple sells more. Part of the reason, Apple is typically late on some of the tech the Samsung uses, is because they wait and see if consumers really want it or if the implementation is right

The whole samsung phone concept never appeal to me from day one. Shenanigan is what they always good at and you will fall into it as their customer over and over again.

I don't think consumers can keep up with new devices every year. Besides, most operators want a 2 year commitment at a minimum.

This has nothing to do with whether or not a company should have gone with Android or Android for that matter. Samsung has reached their peak. This is nothing surprising. People are getting bored with Samsung and new models do not give current users a good incentive to upgrade.

techbeck said,
This has nothing to do with whether or not a company should have gone with Android or Android for that matter. Samsung has reached their peak. This is nothing surprising. People are getting bored with Samsung and new models do not give current users a good incentive to upgrade.

Maybe out of context here but people claimed that android was a goldmine and Nokia was missing out.

The only company making any money on Android is Samsung, and the amount of money they are making is falling

No, other companies are making money on Android as well. Not as much as Samsung tho but profits all the same. In fact, HTC recently started to profit again. LG is gaining ground two and is making a profit now. Other OEMs as well.

People are getting bored with Samsung. Why other OEMs like LG, Motorola....can and will do better. LG announced an increase in phone shipments up from 20 percent from last year.

Samsung always makes a big announcement and generates a lot of hype towards a new phone release. Most of the time, its lackluster and does not live up to the hype. This irritates users and puts them off a certain platform. Why I like LG, they produce great phones without the hype and let the phones speak for themselves.

Riva said,

Maybe out of context here but people claimed that android was a goldmine and Nokia was missing out.

Yeah, that is why every one capable of making phones is making android phones ... except you know who. The 3% market share company :)

DaveBG said,

Yeah, that is why every one capable of making phones is making android phones ... except you know who. The 3% market share company :)

And Apple. But why would a competing company produce competitor products?

techbeck said,

And Apple. But why would a competing company produce competitor products?

Samsung should switch back to iOS.

techbeck said,
No, other companies are making money on Android as well.

You mean Microsoft out of royalties, right?

I am glad people realized that all Samsung makes is bunch of crappy cheap smartphones and that the reason it looks more advanced is not because Samsung makes software but because android allow you customize further. as a matter of fact I think Samsung kinda degrades stock android experience that you find on nexus 5 or moto x with pointless water effects and slow animations.

Open Minded said,
You know you can turn them off, right?

you cannot turn off touchwiz, you can turn effects off. which doesn't alter the fact that you have another layer on top of stock android, unless you get google play edition which doesn't have full support for hardware stuff like camera, health sensors....

trojan_market said,

you cannot turn off touchwiz, you can turn effects off. which doesn't alter the fact that you have another layer on top of stock android, unless you get google play edition which doesn't have full support for hardware stuff like camera, health sensors....

Actually, the Touchwiz framework is still there in the GP ROMS. So yeah, everything works.

Good, it will get them off their butts and push them to start making more innovative hardware and software, instead of churning out the same touchwiz crap on a different screen size every couple of months.

After the absolute crap my Focus and Focus S were, and couple that with I have handled every generation of Galaxy, I have never been impressed with Samsung phones. They make good refrigerators though (samsung, not their phones).

Astra.Xtreme said,
lol "high end".

even if they make the most classy "high end" smartphone they will ruin it with pointless bubble and water effects and horrible touchwiz. lets be honest all smasung does is marketing but sooner or later people realize they are paying top bucks for plastic piece of crap

trojan_market said,

even if they make the most classy "high end" smartphone they will ruin it with pointless bubble and water effects and horrible touchwiz. lets be honest all smasung does is marketing but sooner or later people realize they are paying top bucks for plastic piece of crap

Plastic has better signal tho

trojan_market said,

even if they make the most classy "high end" smartphone they will ruin it with pointless bubble and water effects and horrible touchwiz. lets be honest all smasung does is marketing but sooner or later people realize they are paying top bucks for plastic piece of crap

People are still paying top dollar for an iPhone 5S, a one year old phone, and an iPhone 5C, a 2 year old phone...

trojan_market said,
r later people realize they are paying top bucks for plastic piece of crap

This always cracks me up. I will take my plastic "piece of crap" that can withstand a 6ft fall and slide a crossed concrete with a minor scratch than an a device made out of aluminum that allows the screen to shatter and phone to dent any day of the week.

Call the material cheap, crap, whatever but it takes more of a punishment than a lot of the higher quality material phones do. That is called durability and is far from crap.

techbeck said,

This always cracks me up. I will take my plastic "piece of crap" that can withstand a 6ft fall and slide a crossed concrete with a minor scratch than an a device made out of aluminum that allows the screen to shatter and phone to dent any day of the week.

Call the material cheap, crap, whatever but it takes more of a punishment than a lot of the higher quality material phones do. That is called durability and is far from crap.


believe me plastic case is the least of Samsung's phones problems. first and foremost is that they should use stock android instead of buggy touch wiz. but anyways when you pay around $600 for a flagship phone you would expect to get something premium not plastic and fake leather stiches

Scabrat said,

People are still paying top dollar for an iPhone 5S, a one year old phone, and an iPhone 5C, a 2 year old phone...


5S and 5C came at the same time. I don't know what you talking about

techbeck said,

This always cracks me up. I will take my plastic "piece of crap" that can withstand a 6ft fall and slide a crossed concrete with a minor scratch than an a device made out of aluminum that allows the screen to shatter and phone to dent any day of the week.

Call the material cheap, crap, whatever but it takes more of a punishment than a lot of the higher quality material phones do. That is called durability and is far from crap.

You do realise that metal is a more durable material than plastic, right? Aside from scratching my iphone 5 has endured a hell of a lot of abuse and still looks good.

Similarly, it is why my ipad 3 has endured years of utter terror from my two very young children and still looks great and operates flawlessly. In fact the abuse my kids gave it it would say it is damn near bulletproof. My plastic samsung tablet barely lasted a few months.

To be fair, all phone screens will shatter if the impact is in the right location. Whether the chassis is metal or plastic won't help that matter. Metal dents, plastic cracks, choose your poison. If it's that big of a deal, throw a case on it and call it a day. If I'm paying for a top-tier phone, I would at least like to get top-tier materials.

Samsung is the only one that has produced garbage looking phones for the past few years. LG, Motorola, HTC, Nokia, etc are all magnitudes better. If they want to use plastic, great, but don't make it look like a Happy Meal toy.

Astra.Xtreme said,
To be fair, all phone screens will shatter if the impact is in the right location. Whether the chassis is metal or plastic won't help that matter. Metal dents, plastic cracks, choose your poison. If it's that big of a deal, throw a case on it and call it a day. If I'm paying for a top-tier phone, I would at least like to get top-tier materials.

Samsung is the only one that has produced garbage looking phones for the past few years. LG, Motorola, HTC, Nokia, etc are all magnitudes better. If they want to use plastic, great, but don't make it look like a Happy Meal toy.


Again the design is subjective based on everyone's tastes. It might look garbage to you, but maybe some people prefer their designs. Your bias in every samsung-related post is repetitive.

Astra.Xtreme said,
To be fair, all phone screens will shatter if the impact is in the right location. Whether the chassis is metal or plastic won't help that matter. Metal dents, plastic cracks, choose your poison. If it's that big of a deal, throw a case on it and call it a day. If I'm paying for a top-tier phone, I would at least like to get top-tier materials.

Samsung is the only one that has produced garbage looking phones for the past few years. LG, Motorola, HTC, Nokia, etc are all magnitudes better. If they want to use plastic, great, but don't make it look like a Happy Meal toy.

Agreed. And any phone can shatter.... Agreed. Just mean that plastic had more give and seems to do better.

Scabrat said,

People are still paying top dollar for an iPhone 5S, a one year old phone, and an iPhone 5C, a 2 year old phone...

Yes, but its an iPhone.

@trojan_market, this just cracks me up: "all smasung does is marketing but sooner or later people realize they are paying top bucks for plastic piece of crap"... Did you know aluminum is the 'Cheapest' metal on earth? Now all Apple does is marketing, I just cannot understand why sooner rather than later people have realized they are paying top bucks for an ‘aluminum' piece of crap! On top, most people cover it and protect it with, yes, with plastic!

trojan_market said,

lets be honest all smasung does is marketing but sooner or later people realize they are paying top bucks for plastic piece of crap

You know people say the same thing about Apple. And it's just as true.

The premium materials like? apple uses nickel coating on their aluminum casing which u know what it does to humans? Google it.

Apple fanboys are so annoying I had to write that rebuttal.

mr_sock_00 said,
The premium materials like? apple uses nickel coating on their aluminum casing which u know what it does to humans? Google it.

Apple fanboys are so annoying I had to write that rebuttal.

Apple fanboys? Get over yourself...

VHMP01 said,
@trojan_market, this just cracks me up: "all smasung does is marketing but sooner or later people realize they are paying top bucks for plastic piece of crap"... Did you know aluminum is the 'Cheapest' metal on earth? Now all Apple does is marketing, I just cannot understand why sooner rather than later people have realized they are paying top bucks for an ‘aluminum' piece of crap! On top, most people cover it and protect it with, yes, with plastic!

it is not fair, I am not apple fan by anymeans but I am technology lover. apple invented touch screen modern smartphones. you got to give them credit for it. Samsung invented nothing. they are not even a pure tech company. they have oil well in texas. they make LED screens and they are pharmaceutical company and they are into oil and gas. they are just a big company looking for profit. apple is a tech company. yes their stuff is overprices. but they make their hardware and software. Samsung doesn't even use its Tizen in smartphones. they use google's android.

VHMP01 said,
@trojan_market, this just cracks me up: "all smasung does is marketing but sooner or later people realize they are paying top bucks for plastic piece of crap"... Did you know aluminum is the 'Cheapest' metal on earth? Now all Apple does is marketing, I just cannot understand why sooner rather than later people have realized they are paying top bucks for an ‘aluminum' piece of crap! On top, most people cover it and protect it with, yes, with plastic!

and by the way for the nonsense about aluminum. yes its a cheap metal, but it is light and durable. and definitely is more expensive than plastic. and you know its not the raw material but the process to cut the metal and shape it into phone case is much more expensive than plastic right? and you and I both agree aluminum feels more premium in hand than plastic. it just does no argue about it. its like saying day is not bright

trojan_market said,

5S and 5C came at the same time. I don't know what you talking about

The 5C has nearly the exact same internals, save the battery, as the 5, which is, as I said, 2 years old.

As the 5 was to the 4s, as the 4s was to the 4. It's been quite some time since Apple have really done anything worthwhile in an upgrade.