Smartphone market slowdown

Tencent Technology News July 8, due to the slowdown in the smartphone market growth, Samsung Electronics on Tuesday expected its second-quarter operating profit fell 24% year-on-year. This is also Samsung's third consecutive quarter of operating profit decline.

Data show that in the second quarter ended June 30, Samsung expects operating profit for the quarter to 7.2 trillion won, or about 7.12 billion US dollars, a substantial decrease of 24.45%, a decrease of 15.19%.

Samsung's operating profit fell below 8 trillion won for the first time since the second quarter of 2012 (6.46 trillion won).

Samsung expects second-quarter sales of 52 trillion won, down 9.4% from the previous year and down 3.13% from the previous quarter.

Samsung released the same quarterly results of the second quarter expectations, it does not contain details of the performance of various departments, a comprehensive performance report will be released later this month. However, 7.2 trillion won in operating profit or with Thomson Reuters survey of 38 analysts given 8.3 trillion won there is a big gap.

In the meantime, Samsung said in a statement that poor performance was mainly due to more intense competition in the Chinese and European markets, which in turn led to the sluggish sales of low-end handsets. Samsung also said that continued price competition and lower demand for 3G products in the Chinese market are also contributing to poor performance.

Samsung said tablet sales were weak in the second quarter as consumers switched to tablets less quickly than smartphones. In addition, the higher South Korean won against other currencies also affect the quarter revenue.

For the future, Samsung said the strong trend of the won is expected to be checked, and the new products are expected to further boost sales volume, so the third quarter results will be significantly higher than the second quarter. However, some analysts believe that the global high-end smart phone market slowdown in the context of growth, Samsung may have plunged into low growth.

For Samsung, revenue generated by smartphones accounted for two-thirds of total revenues. Currently, Samsung and its veteran Apple are under pressure from Chinese handset makers. According to data from the market research firm Strategy Analytics, both companies experienced declines in market share in the first quarter.

Currently, Samsung's global smartphone market share dropped from 32% to 31%, which is the fourth time since the fourth quarter of 2009, Samsung's market share fell for the first time. At the same time, Apple's market share dropped from 17% last year to the current 15%. (Lee Road)