Samsung revenues expected to slump on Galaxy S9
Samsung’s slow iteration process along with hotter competition from Apple and manufacturers in China will put a damper on Galaxy S9 sales, market analysts say. Reuters has compiled a consensus estimate of a 2 percent drop in revenues for the second quarter.
Apple reported strong iPhone X sales continuing on from the holiday quarter while players like Huawei, Xiaomi, vivo and OPPO have adopted advanced features such as triple rear cameras and in-display fingerprint sensing — the Galaxy S9+ is the first in the Galaxy S series to feature a dual-camera system and the second in the flagship range behind the Galaxy Note 8. Xiaomi, in particular, continues its dominance over Samsung in the India market.
While the company sold more than 320 million last year and is on track to place well into that range this year, any decline in flagship sales will prove detrimental to revenues.
“Market watchers don’t have high expectations for its smartphone business at the moment, when Chinese players have already caught up in technology and ideas,” said Park Jung-hoon of HDC Asset Management.
Revenues from Samsung’s chip business are forecast to rocket 50 percent up from a year ago and are, by far, the biggest contributors to the Samsung Electronics profit. But the chaebol will want to look for a way to kick-start all of its cylinders and soon.