Samsung’s impressive run of reporting record profits in every quarter for the past year has come to an end. The reason behind the slump? Apparently, the company’s latest flagship phone the Samsung Galaxy S9 isn’t flying off the shelves like previous models.
The Korean tech giant released its earnings guidance revealing it brought in 14.8 trillion won ($13.2 billion) in operating profit off 58 trillion won ($51.8 billion) in sales for Q2. To break it all down, that is a 0.7-percent decline in sales and a lackluster 11-percent increase in profit year on year. That pales in comparison to Samsung’s last quarter where the company boasted 15.64 trillion won in profit from an impressive 60.56 trillion won which was the Samsung’s best results ever.
Speaking to The Wall Street Journal and Financial Times, analysts specifically point to the smartphone’s poor sales weighing on Samsung’s bottom line. Billed as “the phone reimagined” it has reportedly sold fewer units than any of the company’s flagship models since the Galaxy S3 moving 31 million handsets this year. Samsung’s Galaxy S7 is said to be the tech company’s best selling model moving an impressive 50 million units.
Things could improve for the company, but with Apple reportedly leaning on electronics giant LG to supply its OLED displays for their upcoming iPhones, Samsung could be looking at another dip in the numbers. Apple doesn’t want to solely rely on Samsung for the displays and could hamper the company’s ability to sell the displays and charge a premium for them.
Photo: Samsung Mobile