“Yesterday we posted a report titled ‘Apple’s iPhone Success Points to a Bad Q4 for Samsung,’ wherein we stated that Apple’s iPhone scored a hat trick of key online retail sales victories in December that likely contributed to the estimates for Samsung Electronics’ fourth quarter operating profit being revised downward by more than a billion dollars US,” Jack Purcher reports for Patently Apple. “Today we learn that the Samsung’s Galaxy S4 is one of the key burdens dragging Samsung’s financials down. In fact, the Korean press describes it as shocking at just how bad the numbers are likely to be for Q4. Yet the news shouldn’t really surprise anyone.”
“According to a new report, Samsung Group’s electronics affiliates are engulfed in a shock ignited by the Galaxy S4. Many forecast that Samsung Electro-Mechanics, Samsung Display, and Samsung SDI are expected to report disappointing fourth-quarter performances, which would be even lower than their lower-than-expected third-quarter performances,” Purcher reports. “The Korean press expressing ‘shock’ over the collapse of Galaxy S4 sales this quarter is understandable to a certain degree. Yet perhaps they were sticking their heads in the sand to a certain extent because the signs of trouble had been brewing for months.”
Read more in the full article here.