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How Samsung can take on the iPhone 6

2014-08-04
hey guys it's the eye from the verge I'm here with our new executive editor dieter bone hello in this totally not contrived situation during which we oldest us Samsung yeah they just had their quarterly earnings like earnings like everybody else in the planet and the news wasn't super great yeah they're down there down there their net profits were down year-over-year and that's the first time I think that's happened since they had their big galaxy phone explosion and their their other like their operating profit the other profit measure has been down for three consecutive quarters so basically Samsung was the only company on the planet other than Apple that was like completely rocking and rolling on phone sales and kind of just like Apple they've kind of hit the plateau but Apple's phone sales are up yeah but the people are a little bit concerned about Apple but Samsung's is more dire than Apple's it seems and but the problems seem like they're not necessarily United States right there and like you're up there definitely in China but smaller so the the China thing is the the big problem so glad sab out put up a really excellent piece where he makes the case that the way that Samsung one there's a few ways but one of the ways they want is they had really good parts and they could sell for cheaper than anybody else and a good enough phone and that game worked for them for a long time but they're getting beat by that at that same game by people in China's job seemed a long way cheaper phones yes screens making cheaper phones larger screens but they're good enough quality and they've they're just they're a better fit for that market right now so this leads into what I think is like my universal theory of Samsung which is that they own display companies right so they're not totally vertically integrated but they're very closely aligned with this huge display manufacturing facility as ships to in ships so if you look at the TV market Samson totally took over TV market by being the first to ship huge LCD TVs for sheep and now they own that market if you look at phones what's happening in phones the screens are getting larger and larger Samsung obviously the first to ship gigantic OLED phones and nobody knew that this was going to be a hit but they were able to ship so many screen sizes and then optimize against a huge screen like the Galaxy Note 3 they'd be being enormous Lee successfully for anybody else could catch up I think that leverage is kind of over for them I think I don't know that phone's necessarily going to bigger than yes I wish I could say I agree with you but I don't know cuz every time I've been saying phones aren't gonna get any bigger for two years now and I've always been wrong right I just think we're we're at a point now if you look at like like you know apples Mac sales are gonna back up get it and I've had sales are shrinking I think you're gonna end up with a really big phone and a laptop and somebody has to try out what tablets are gonna do and the only company it's been really successful in tablets is Apple yep this is a gallon it's have s that's the tab of this thing by the way this is the grossest feeling substance yeah that's all produced that was the other thing that came out of the earnings call is it sounds like they are finally getting the message that we don't enjoy this plastic this it's only taken several years yeah and so apparently they're gonna have another flagship phone released that's not a note later this year that's gonna have you know better materials and that's got to be a reaction tab I mean cuz apples gonna do a big phone and if I mean I've been waiting for a big iPhone for long I mean the main attraction of this device to me it's not the pen or Samsung's weird software but its gigantic screen but every time I look at one I'm jealous of it ya know that's that's the thing that when you like talk to actual regular consumers especially in the US but I think in the other markets - it's like why didn't you get an iPhone oh I wanted the bigger screen so once that goes away Samsung is potentially in big big trouble so how do they differentiate a solid they have to do a better job of what like they need to like do what HTC does and make a nicer looking phone but that certainly hasn't been enough for HTC so they also have to fight and shine like I I wouldn't want to be Samsung right now but they've been so successful and they've like risen above the stereotype that it's you know really really crappy software really really cheap design if they can do that and just execute better on the plans they already have in place get-get Tizen phones on the low end make high-end phones seem nicer and better and make their software actually feel compelling and not yeah right I mean those are all hard problems but they're actually they are attacking all three of those things well particularly because they're in constant conflict with Google over what Android should be right so they're the Samsung is the only company that has ever managed to turn a profit on Android really yeah and they're doing that on tablets on phones and now on watches they're having that fun right so hard to be Samson right now anyway that's us thanks for watching subscribe
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