Samsung, the mobile behemoth, is showing signs of stumbling. Earlier today Samsung announced its earnings for Q2 of 2014. The numbers were so unusual that they issued an explanatory note alongside them. In short, Samsung fell short of their record profits from last year. The decline in Q2 marks the second quarter in a row that Samsung performance has gone down.
Samsung has shared a few reasons why performance is down. They claim demand for their phones in Europe and China is down. China itself has proven to be difficult for Samsung. They also claim “sluggish” sales of tablets, which doesn’t surprise us one bit. Despite the declines Samsung still expects to make $51.5 billion in revenue and $7.1 billion in profit for Q2. Those numbers sound incredible (and they are), but they are significant lower than last year.
The most shocking part of this news is that Q2 of this year included the launch of Samsung’s flagship phone, the GS5. Even the launch of a new Galaxy phone couldn’t save the quarter. Meanwhile, HTC turned a profit in the same quarter for the first time in almost a year. Could the tide be shifting back in HTC’s favor? Has Samsung’s saturation strategy come back to haunt them?