Samsung blaming weak Galaxy S9 sales for profit growth slowdown. Samsung Electronics Co Ltd reported a drop in its Q2 profit growth in more than a year on Tuesday. The company said its Galaxy S9 device sell missed targets and the increasing competition in the smartphone market lead to slowest quarterly profit growth.
Operating profit from the mobile business reached its biggest decline – fell 34 percent – from a year ago, since the first quarter of 2017, said the Apple components supplier and smartphone rival.
The South Korean tech giant gets an operating profit of 14.87 trillion won ($13.3 billion) on sales of 58.4 trillion won ($52.1 billion), while faced 4 percent year on year down revenue. Its April-June revenue dropped 4 percent to 58.5 trillion won.
“Samsung was already lost to China in price competition and is getting threatened by Chinese models in designs and hardware strength,” said a fund manager at HDC Asset Management that owns Samsung shares, Park Jung-hoon.
Samsung said that new smartphone launches would call for a major competition. Therefore Samsung would broaden its sales with a new Galaxy Note launch early next month. The July’s report showed that Apple’s iPhone 8 outturned Samsung’s latest Galaxy 9 Plus premium phone.
Apple is expected to post a hike in revenue and profit growth for its third-quarter earnings on Tuesday.
“We are hoping that such adoption will serve as a catalyst in the stagnated mobile market,” said KyeongTae Lee, vice president of Samsung’s mobile business.
Sarah Buscaino is a seasoned journalist with 10 years experience as a reporter and investigative journalist. While studying journalism in Toronto, Sarah got her break as an intern at CITY TV. As a contributor to Island Daily Tribune, Sara covers municipal and provincial politics.