Financial analyst predict that Samsung will post results of another disappointing quarter where it has seen its smartphone market share erode and profits quietly slip away.
Samsung has been quiet aggressive in releasing and promotion of its phones for the past 6 month but that didn’t necessarily convert into profits. The sales numbers have increases compared to the same period previous year but that sales were of entry level and mid-ranged phones where the profit margin is relatively low.
Samsung on its part has already cut the performance expectation and still it couldn’t reach the projected financial figures owing to unimpressive performance from its smartphone division. The overall smartphone industry is slowing down as we near a saturation point where the new handsets are too similar from the existing ones.
“While the unit reported a Q1 and Q2 profit of 2.74 trillion won ($2.34 billion) and 2.76 trillion won ($2.36 billion), respectively, the Q3 profit is expected to remain below 2 trillion won. Overall, the company’s Q3 operating profit is expected to be around 6.61 trillion won, down 6.4% from the 7.06 trillion won figure estimated back in July this year.”-yuanta securities
Although Samsung has seen disappointing results, it smartphones have been impressive even though they haven’t converted into sales figure. The note 5 and galaxy s6 edge+ in particularly offered some excitement in an otherwise boring smartphone industry.
