Samsung’s smartphone sales are down; lowest profits in two years
You’d think that the world’s biggest smartphone maker is having a blast with the launch of devices like the Galaxy S5, but that’s actually far from the truth. Samsung’s quarter results are in, and instead of making its investors happy, it turns out that the company is actually doing as bad as it had forecasted. Samsung warned its investors that the “weak demand” for smartphones and its increase in marketing expenses could hit the company hard, and so it did.
Samsung announced profits of $6.1 billion (6.25 trillion won) compared to its $6.96 billion (7.7 trillion won) of last year, and which would be its lowest quarterly profit in two years. Historically Samsung’s phone business has been a major contributor to its revenue, but the company admits that the Galaxy S5 hasn’t been as hot as expected, and that’s particularly odd since the iPhone continues to sell like hotcakes, and the entry-level sector was being dominated by companies like Huawei and Lenovo last quarter.
Samsung is also forecasting these same results for next quarter. The company does see a sales hump with the launch of devices like the Galaxy Note 4, but it’s not expecting the same level of success that it has found in previous years. Rumors of a bigger iPhone at times when the smaller one is doing just fine is a key indicator for Samsung’s need to worry.
Do you think it’s time for Samsung to reinvent its smartphone designs, or what would you suggest Samsung do to regain its popularity? Leave us your thoughts in the comments.