Yesterday, “Korea’s UDN reported that Samsung’s supply chain sources were stating that Samsung’s goal was to ship 21 million Galaxy S5 units this quarter and that they’ll likely ship closer to 15 million which is a 25% target miss,” Jack Purcher reports for Patently Apple. “That would be a huge miss. Now Korean security firms have gone negative on Samsung. A new Korean report published this morning states, ‘Samsung Electronics’ profitability is expected to deteriorate in the second quarter of this year, unlike the previous prediction.'”
“The report further notes, ‘Securities firms’ quarterly operating profit estimates have been adjusted downward, with the most optimistic estimate being 9 trillion won (US$8.8 billion) and the least 7.9 trillion won (US$7.7 billion). The wide gap implies the difficulty in prediction. What is noteworthy though is that the most pessimistic estimate dropped toward the end of June. Last month, Korea Investment & Securities adjusted its estimate from 9.3 trillion won to 8.3 trillion, won and Samsung Securities cut its forecast from 9.4 trillion won to 8.5 trillion won,'” Purcher reports. “These are huge drops.”
“Research analyst Song Myung-sup at HI Investment & Securities stated that such negative forecasts can be attributed to the IT & Mobile Division, which accounted for over 60 percent of the electronics giant’s sales and business profits last year,” Purcher reports. “The division’s smartphone and tablet PC shipments are estimated to have declined significantly in the current quarter. ‘According to our forecast, smartphone and tablet PC shipments have fallen at least 10 percent and approximately 20 percent from the preceding quarter, respectively.'”
Read more in the full article here.
MacDailyNews Take: Aw, that’s just terrible. 🙂
Looks like knocking off the world’s preeminent smartphone by making it bigger, uglier, far less secure, and out of plastic, with fewer (and lesser) apps just isn’t paying the way it used to pay, back when first-time buyers were naive about how a real smartphone is supposed to look and work.
[Thanks to MacDailyNews Readers “Arline M.” and “Dan K.” for the heads up.]
As Apple’s iPhone 6 freezes market, Samsung cuts Galaxy phone orders by as much as 25% – June 16, 2014