SAMSUNG’S RUN OF RECORD PROFITS looks to be coming to an end and the Galaxy S9 is reportedly to blame.
Samsung, which has reported record profits for every quarter in the past 12 months, on Friday released its earnings guidance for the second quarter of 2018. Operating profit for the three-month period is expected to come in at 14.8 trillion won ($13 billion) from 58 trillion won (£39bn) in revenues.
While these aren’t numbers to be sniffed at, especially as it marks an 11 per cent increase in profit year on year, it’s a far cry from the first quarter of 2017, during which Samsung recorded its strongest results ever with 15.64 trillion won in profit from revenue of 60.56 trillion won.
While Samsung’s vague statement fails to show performance and profit estimates for each business division, reports claim the firm’s smartphone division, in particular its flagship Galaxy S9 and S9+ smartphones, are to blame for the slowdown.
Samsung has struggled with “weaker-than-projected sales” of its Galaxy S9 smartphones, according to Bloomberg, which have reportedly sold the lowest of any flagship Samsung smartphone since 2012’s Galaxy S3 with expected shipments of 31 million units this year.
The Samsung Galaxy S7 has reportedly been the company’s most-popular smartphone today, having sold around 50 million units.
Samsung hasn’t commented, but back in April warned that its mobile business would see “stagnant sales of flagship models amid weak demand and an increase in marketing expenses” in the second quarter.
Bloomberg notes that Samsung’s OLED sales to Apple for its iPhone X have also been weaker than expected, despite Apple having flogged 52.2 million phones in the second quarter.
While this might increase later in the year when Apple unveils its 2018 iPhone lineup, recent reports claim the firm has roped in LG as an alternative OLED supplier in a bid to lessen its reliance on Samsung. µ
Source : Inquirer