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A SLOWDOWN IN tablet sales and increasing competition in the lower-end of the smartphone market were some of the reasons Samsung provided as it braces itself for another decline in profit.
Samsung has estimated that its operating profit will fall by 24% to 7.2 trillion won (€5.2 billion) compared to a year ago, which would make it the third quarter in a row it experienced a decline in profit.
The company issued a one-page explainer in advance of its second-quarter earnings report, explaining the reasons for this decline and to reassure investors that things will change.
Among the reasons given included an over-delivery of smartphones which led to an excess amount of devices in Europe and China. Increased competition in the mid- and low-range market and “weak demand” for smartphones in these areas caused problems for the company.
Samsung said it also saw more people choosing to wait for 4G-enabled smartphones instead of buying current 3G versions, while tablet sales suffered greatly due to customers choosing smartphones with larger screens instead.
The growing strength of the Korean Won against the US Dollar, Euro and most currencies, has meant that exports have resulted in less revenue, and increased spending on advertising also contributed to these problems.
The company says it “cautiously expects a more positive outlook in the third quarter” when it releases its new smartphone lineup. It said it will continue to focus on other areas like wearable devices, and smart home applications.
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Samsung need to up their game and put out a better finished product with a more premium feel. I have a Samsung s3 and am thinking of upgrading in the coming months and am looking at Sony xperia z2. Samsung s5 is no great shakes.
Agreed. I was looking at lg g3. Ive s3 as well but its still a great phone ive no problems. Maybe that another thing they made such a good phone in the s3 there is no need to update for years.
Commenting off a S5 right now and it’s unbelievable. Never thought I would leave an iPhone 4 until now
Played around with s5 just seems a slightly updated s3 to be honest. Not been blown away by the upgrades. But no fear id ever touch an apple again. Ick horrible OS. Will stay with android just Maybe not Samsung
The mobile malware stats suggest Apple is safer.
I honestly couldn’t tell you the difference between a Samsung S3 and whatever they are on now. Seems Samsung hit some sort of ceiling with their progress.
Are they the lads that released the tablet sized phone that looks ridiculous to talk into?
Samsung a great bunch of lads…
Can’t go wrong with an iPhone
Ha ha ha ha ha ha ha ha ha ha ha ha…bah haha haha haha haha…snort…haha haha haha haha haha.
The latest trend is for a sealed battery in the phone following from the IPhone design..
This is suitable for NSA spying and hacking because they can access your data even if your phone is powered off… Another reason why these cockroaches want your phone charged prior to boarding an aircraft….
Sounds like you should get out more Frank.
Hairy lemon … Do you work for these cockroaches?
Beware of the voices Frank.
Id say they would watch you far more than me frank.
“Burn them Frank”. “Burn them all”…
I’m holding onto my Nokia 5110 yet. This technology stuff swings in roundabouts.
I’d say they are fine considering they make $6486 a second. The most from all the tech companies.
http://www.happier.co.uk/infogram/amount-top-companies-earn-per-second.html
there hasnt been any reason to get a new phone since i purchased an iPhone 4s. i know apple has its failings but Android is a joke.
I’d say a lot of people have tried Samsung phones but are now going back to iPhones.
Android is a mess, reminds me of the Java phone days. Apps take way longer to come to Android and when they finally launch there’s a 50% chance of it not being compatible with your device. Rubbish cheap ass tech
They would not be down profits if their shitty smartphones actually worked
You can put “cynagoen mod” onto Samsung phones quite easily. The software out passes anything Samsung, HTC, IPhone roll out its far more aware of making a phone private… Frank you would Love it. It also makes older hardware work far more efficiently…
Profits might be down due to HTC, Sony, Nokia, and Huawei making better phones as well as other manufacturers.
Also if they didn’t do an Apple on it and only marginally improve S4 on S3 and S5 on S4 they would have kept more loyalty I think
And phones last a couple or more years so a lot of people who can afford a smartphone could already have one
This is just marketing, or brand building, fcuk ‘em
Have had several Samsung phones and in fairness all worked fine but their Kies programme is crap and for that reason I won’t buy another
have your say