It is not hard to imagine the reasons why Samsung is expected to experience a disgusting quarter, because according to analysts, the reason for the drop in profit is lackluster Galaxy S9 sales.
The Korean electronics giant said Thursday that it expects to record an operating profit of 14.8 trillion Korean won ($13.2 billion) for the three-month period ended June 30, an increase of 5 percent over the year-ago-period. This contradicts reports that the Galaxy S10 will be unveiled first.
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. Now that mid-2018 is here and the expected release date is drawing near, new Chinese and Korean rumors concerning the specs of the Galaxy X emerge, presenting truly revolutionary technologies.
New monthly data released on Thursday by mobile phone market tracker Counterpoint Research highlighted Samsung's problems, showing its latest Galaxy 9 Plus premium handset had been overtaken by Apple Inc's iPhone 8 as the world's top-selling smartphone due to weak sales in Europe.
In January, reports claimed that Samsung was looking to set the Galaxy X launch this December or early 2019. "They will provide a good experience to consumers if we make them well", Koh said at the time.
CHIPPING AWAY While the smartphone business struggles, Samsung's profits are being driven by strong global sales of DRAM and NAND chips which account for about a third of its revenue.
That said, Samsung may have liked the look of its Google-seeded smartwatch and changed its plans. Furthermore, the report asserts that the Samsung SDI is developing a foldable phone with V-shaped battery.