Note 7 "Explosive Door" incident sequelae Samsung mobile phone profits ranked only ninth in the world

The latest market research report shows that in the global mobile phone profit ranking, Samsung fell out of the top five for the first time, Apple still tops the list, and Huawei became the world's most profitable Android smartphone manufacturer for the first time.

Data show that this quarter, the total operating profit of smartphones was 9.4 billion US dollars, while Apple's operating profit was as high as 8.5 billion US dollars, accounting for 91% of the global operating profit of the smart machine industry. Chinese companies Huawei, vivo and OPPO ranked 2-4, accounting for 2.4%, 2.2% and 2.2% respectively. Among them, Huawei has become the world's most profitable Android smartphone manufacturer for the first time in history. The remaining other brands accounted for only 2.2% of profits.

Note 7 "Explosion Gate" incident sequelae Samsung mobile phone profits only ranked ninth in the world

It is worth noting that Samsung is only ranked ninth in this ranking, and its profit is only 10 million US dollars, accounting for only 0.1%. Previously, Samsung maintained its second position in the world for a long time. In the global smartphone revenue in 2015, Samsung accounted for 14%.

According to Samsung Electronics’ third-quarter report for fiscal year 2016, Samsung’s overall operating profit in the third quarter fell by 30% to 5.2 trillion won based on nearly 7.4 trillion won a year ago, and net profit fell 16.8% year-on-year. At 4.54 trillion won (about 4 billion U.S. dollars), revenue fell by 7.5% to 47.82 trillion won.

The industry believes that the Note 7 "explosive door" has pushed Samsung to the most dangerous situation in history, not only suffered huge economic losses, but also caused incalculable brand damage. After the Note 7 smartphone was discontinued due to the "explosive door" incident, Samsung's mobile operating profit fell 96% to 100 billion won a year ago.

Samsung said that due to the catastrophic events of Note 7, the quarterly profit of the mobile sector hit a record low since the launch of the Galaxy series of mobile phone products for the first time six years ago. Samsung plans to launch the next flagship smartphone, the Galaxy S8, in February next year, which may be a turning point for Samsung's mobile division to reverse the market situation.

"Apple tries to increase product pricing and reduce production costs, and this ability is extremely strong, so the iPhone continues to create huge profits," said Linda éš‹, director of Strategy AnalyTIcs.

According to Neil Morston, executive director of Strategy AnalyTIcs, Huawei generated $200 million in operating profit worldwide with a 2% share in the third quarter. Efficient supply chain, quality products and effective marketing are the main drivers for Huawei's strong profits. force. Due to the surge in mobile phone shipments in Asia and the establishment of strict pricing standards, vivo and OPPO achieved relatively stable profits in the third quarter.

Earlier this month, Huawei released the annual flagship mobile phone Mate 9 series, the price of some models reached nearly 10,000 yuan. The industry believes that Huawei's high-end layout and mobile phone sales in the past two years are the main reasons for Huawei's mobile phone profits. Moreover, Samsung is facing difficulties at this time, creating opportunities for Huawei to catch up. However, although domestic mobile phone manufacturers have made great progress in profits and revenue. But whether it is brand value or economic strength, they are not far from Apple.

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