Well, we called it and no one listened – yet again.
The company’s Q1 net profit fell 39 per cent to KRW4.63 trillion, on revenue of KRW47.12 trillion, down 12.2 per cent.
After a tough first quarter, there were some signs that Samsung was regaining its growth momentum in its mobile business. Its new flagship Galaxy S6 models were the second-best selling smartphones in April after Apple’s iPhone portfolio, according to Counterpoint Research.
Despite the early success of the Galaxy S6, it has not been able to expand its market share.
A softening of the worldwide smartphone market, and supply shortages, have led to slower than expected sales of its Galaxy S6 lineup, which have more than offset higher returns in its chip business in Q2.
“Overall shipments of the S6 have not been as good as hoped, causing the revenue miss reported,” wrote Dr Richard Windsor in his Radio Free Mobile blog. “The good news is that margins have held up well.” In fact, Windsor expects Q2 to be “the last quarter where the headlines are overwhelmingly negative,” driving “low single digit earnings growth for at least the next couple of years.”
Samsung is expected to report its full results in late July.
The truth is that Samsung, like HTC have seen the same pattern now for the last couple of years. A burst of upgrades on release followed by… well.. nothing really.
For me, Samsung have got really lazy and seem to have run out of ideas. There was nothing innovative about the SG6, indeed in many cases it was a backward step, attempting to copy the iPhone 6 with the removal of the SD card and thinking their Androidians would act the same way as iPhonians and buy it anyway.
Nope. Only the Cult of iPhonia is strong enough for that bizarre behaviour.
So, with the main Android OEM’s falling flat on their faces, you might think they’d like to partner with someone who has some idea of how a phone should work and has some fresh new ideas…
Can you think of anyone?