Slow Smartphone Sales to cause Samsung Q2 2015 Revenues to shrink

Slow Smartphone Sales to cause Samsung’s Q2 2015 earnings to shrink

June 24, 2014
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Early reports from Samsung reveal that the company’s Q2 2015 revenue could dwindle owing to increased competition for its mobile division.

Apple and LG have been posing some serious competition to the South Korean Tech Giant, and market trends are pointing to Samsung losing some of its market share to its competition.

Slow Smartphone Sales to cause Samsung Q2 2015 Revenues to shrink

Samsung’s mobile division, which is the cash cow of the Samsung Group, has reported slow smartphone sales especially for the mid-range niche.

“Even though the profits of semiconductor, display, and consumer electronics businesses will likely grow in the second quarter, the firm’s mobile business unit will see its profit decline due to the lackluster sales of mid-range smartphones and tablet PCs,” said Song Myung-sup, an analyst from HI Investment & Securities in his financial report.

Samsung was able to shift 77 million units out of the 85 million the company had projected to ship in Q2 2014. The poor performance of the Samsung Galaxy S5 is also a factor that will lead disappointing Q2 2014 revenues.

However, Samsung is confident that its next flagship device, the Galaxy Note 4, plus its upcoming array of Android Wear Devices will boost its revenues for Q3 2014.

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Kevin is a Passionate Technology Enthusiast and the Lead Writer at MobiTrends. He has been writing about Smartphones and Mobile Technology since 2012. Drop him your comments below :)

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  • iKrontologist

    With 315 Million smartphones sold last year, being more than Apple and Samsung’s top 4 competitors combined it won’t amount to much. They could basically lose 100 million sales and still blow all their competition away with expected sales of 400 Million smartphones this year. Not to mention they’ve just completed building the largest cell phone production only plant in the World in Vietnam. It should be coming on line this August if not by end of July. Now this move to Vietnam cuts high end smartphone Manufacturing costs by half that in China. At the same time…. they may be starting construction on a new screen plant in Vietnam too!

    Here’s the numbers for 2nd quarter sales of smartphones and it has Samsung and Android selling the bulk of smartphones! 😀

    http://www.sammobile.com/2014/06/30/android-samsung-see-global-market-share-gains-in-q2-2014/

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    • Hi

      iKrontologist,

      Great Insight!

      Samsung is and will probably always be a major player in the Smartphone world.

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      • iKrontologist

        Hi Kevin!
        What I don’t like about this headline, is how some tech writers and extremely disturbed and deluded Apple fans are twisting it up to make it look bad for Samsung. When that isn’t the case at all. In order to grow in the future a company must spend money. Samsung earned $217 Billion Dollars last year and on the year that should increase this year too. But Apple’s super deluded fans and Wall Street want to make that look bad for them. So they just report the headline, instead of this whole message of investing in their future as well as right now being in Vietnam. Samsung growing in Africa too. They aren’t like Apple, who is run by Wall Street share holder interests only. Samsung has actually been helping Vietnam and it’s people raise their economy and infrastructure up. They are actually paying better wages, than they would have, had they have chosen another country in the area. But chose Vietnam for close proximity to both China and Korea along with great tax breaks. Plus more important they are teaching kids in school science and technology at an early age. So educated workers for a semiconductor plant, appliance manufacturing, ship building, Airport, mining, power generation, roads, etc are important things they’ll be bringing there in the long run.

        They’ve pumped more money into Vietnam than they’ve made there so far. While increasing their own GDP while at it. Building these plants with solar power assistance in state of the art facilities. They are also going to help them construct a Geothermal Energy Plant to harness natural resources for electric power. They are or have put 50,000 people to work in Vietnam and these people are happy and excited about being a part of Samsung in making life better there. Being rich in natural resources is another reason for choosing Vietnam and signing a letter of understanding. So they are working with them on many different fronts to develop their entire eco system ground up for the long term. Over the long haul, Samsung will make money from this move. But starting from scratch means they can help benefit Vietnam for the good of the country on their efforts petrochemicals, oil and gas, mining, in order to have the least impact on the environment from the start.

        The Japanese had come into Vietnam, began construction of Ship Building in Cam Ranh Bay. But abandoned the project due to falling prices of ships. Samsung hopes to take advantage of the work already done there and help them expand it. Samsung has been in ship building for many years, with the largest shipyard in the World in Korea. Samsung is always thinking about the future and how to make it better for them and the host country. So they understand that the costs are steep at first to do it right at first, to make life better for both of them. Then they’ll worry about making money Profits, over the long haul. Instead of just competing and beating out Apple in competition now. Here’s a link that shows this better and notice that this factory has Solar panels on the roof:
        http://asia.nikkei.com/Business/Companies/Samsung-eyes-aggressive-investments-to-build-Vietnam-empire

        Here’s the Green Technology ratings putting Samsung at #11 and Apple at #21 in environment and I guess I’m just saying that Samsung is a great company for good reasons. They aren’t just going where the money is, they are going into countries where they can grow to better the economies and future everywhere. No doubt you know they own a major interest in Sierra Leone Gold and Silver Mining in Africa. That’s just investment but most likely Samsung is a bigger name all over Africa than Apple is hopefully. Because they build support with friends everywhere they go to help economies and people better their lives!
        http://interbrand.com/en/best-global-brands/Best-Global-Green-Brands/2014/best-global-green-brands-2014.aspx

        By the way this is a nice tech site you have here. Have a good day and a great and even better life in the future! 😀

        (btw if you detect that I don’t like Apple, it’s true I don’t. I think they are Greedy first of all and arrogant above all other companies in the World. They don’t even try to help their own country let alone do anything any good for others. Their first goal is always how to make their share holders richer first by selling one choice and suing competitors out of business instead of actually competing. They propaganda and misinformation about their competition to always ahead without ever thinking of the future and building good will customers Worldwide. It’s all done to make them into an Elitist product maker instead. Their business ethics are all about selling what they got and not ever what customers want first. It’s almost Fascist like in how run their company and customers!

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        • Hi,

          How i wish i could upvote this comment twice or thrice or a million time.

          I agree with you that at times Tech writers paint a doomed future for Samsung.

          For the topic above, i like it that way as it arouses interest in the topic at hand. A reason that gives me a likelihood of valuabe readers sharing their thoughts about the subject.

          It is true that Samsung spends part of its profits on philanthropic activities,

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          • iKrontologist

            I really like the page layout here. It’s great that they made fit wide screen monitors. I checked out your links and that’s great that Samsung is in Kenya too. Apple does very little otherwise it show up on taxes. That’s if they pay them. Since they only pay 2 to 3.5% on 70% of their income in Ireland. It’s why they may be paying around 4 times that amount next year. Ireland now says they would be willing to force corporations to declare a state (country) for tax residency next year. Plus eBooks Scandal and losing in Antitrust court…… just proves they’re criminals. That’s a $800 Million they have to pay the states!

            Samsung does a few things wrong too. But they certainly aren’t ripping off any countries and their taxpayers like Apple’s doing. Lowest rate they have is 12% they got from Vietnam. Apple would then be forced to pay at least Ireland’s 12.5% Corporate Tax Rate…. instead of as low as 2%!

            I’m a fan of Samsung, but they’re not the company I like. I just have a lot more respect for them and hate how dirty they fight. They fight like girls! …..Samsung competes with more and better features than Apple ever has too! 😀

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  • Hi

    iKrontologist,

    Great Insight!

    Samsung is and will probably always be a major player in the Smartphone world.

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)