Samsung forecasts slowing profit growth for Q2, missing analyst estimates

Delia Walker
July 7, 2018

Samsung is still very much a close second, but it's not the Galaxy S9 that's there but rather the bigger Galaxy S9 Plus, which was April's best-selling device.

Samsung's operating profit estimate for the second quarter was also lower than the 15.6 trillion won or US$14 billion profit it generated during the January-March period. Well, at least in terms of the best-selling smartphones list from Counterpoint's Market Pulse survey for May 2018. We've been seeing rumours on the folding Samsung Galaxy X trickle out for a few months, and more recently some bits and pieces about the Galaxy S10.

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. Apple is set to announce its new iPhone and Samsung is also expected to release the new Note device, maybe even earlier than expected. These OELD displays are said to be 7.3-inch wide while unfolded and 4.5-inch in folded state. When CEO Koh Dong-jin spoke about the Galaxy X at a press briefing in Las Vegas earlier this year, he admitted that he was eager to introduce the foldable device. The device will enter mass production later this year ahead of its unveiling in the first month of 2019.

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.

The lack of design change coupled with incremental upgrades such as a specs bump, a minor camera upgrade along with the variable aperture mode was not sufficient to turn the tides in the company's favor.

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