Samsung Electronics warned of weaker phone sales on Thursday after Apple set a new all-time quarterly revenue record and gave a positive iPhone sales outlook. The downbeat forecast came hours after Apple said holiday-quarter sales would beat Wall Street expectations, citing demand for iPhones, services, and wearables such as Apple Watch and AirPods.
Samsung warned that fourth-quarter mobile earnings would decline as marketing costs rise and sales of flagship models soften from their post-launch peaks. “The new smartphone effect will likely fizzle out in the fourth quarter, as people don’t find Samsung’s new Note model, which came out several months ago, very attractive anymore,” said Song Myung-sup, an analyst at HI Investment & Securities. “That will result in a drop in shipments and eventually less profit.”
MacDailyNews Take: Gee, that’s too bad. Karmic, but too bad. (smirk)
Lee Jong-min, Samsung’s vice president of mobile communications business, told an earnings call that mobile was on a downward trend. “Although the mobile market in general will soon enter a period of a strong year-end seasonality, demand is expected to keep trending down year-on-year due to persistent uncertainties in the global macro environment,” he said.
MacDailyNews Take: Beleaguered. See also: Apple becomes the world’s No.1 smartphone maker, January 30, 2020.