samsung tablet lessons

One of the highest-profile tech companies right now is Samsung, so it’s only expected that its finances are heavily scrutinized and analyzed. Today the Samsung Q2 operating profit data has been released to the public, and it’s not looking too wonderful for the South Korea-based OEM — for the third consecutive quarter, operating profit has fallen for the company.

Because of investors’ concerns with Samsung’s near-term growth possibilities, its share price has fallen to 1,292,000 won, the lowest it has been since March 26 of this year. In terms of operating profit, Samsung reports earning 7.2 trillion won ($7.1 billion), while analysts estimated profits of 8.1 trillion won ($8.1 billion) according to Bloomberg, and 7.85 trillion won ($7.76 billion) according to The Wall Street Journal. This amounts for a 24% year-over-year drop.

Samsung cites a slowdown in the smartphone market growth, and South Korea’s strengthening won currency as the reason for the less-than-expected result. Also, competition was fiercer in the critical Chinese and European markets.

The current flagship from Samsung, the Galaxy S5, is expected to begin losing steam this quarter — after an estimated 17 million sales in the second quarter, a brokerage reports an estimate of six million sales for 3Q. In terms of total shipment numbers, it shipped 78 million units in Q2 as opposed to 85 million in Q1.

Final numbers are due later this month, and this definitely does not look like it’s time to panic. The Galaxy Note 4, more devices in the Gear smartwatch family, and a possible Galaxy F are expected to propel the OEM throughout the rest of 2014.

Source: The Wall Street Journal, Bloomberg

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