Samsung expects another weak quarter despite flagship launches


Note 5

No one ever said Samsung’s growing troubles in the mobile sector would vanish overnight. While the company is expected to post decent revenue and profit numbers for Q3 2015 — $5.68 billion in profit is on tap — it’s 6% lower than the company was expected to bring in just a couple of months ago. The mobile business is said to be a bit stagnant making up just $1.7 billion of that profit.

These expectations are despite Samsung’s release of the Galaxy Note 5 and Samsung Galaxy S6 Edge+ in recent weeks. The flagship devices are as good as any (you need only read our reviews here and here to see that), but Samsung apparently continued to misjudge the market as demand for expensive high-end handsets continues to dwindle. Instead, consumers are responding more to affordable options in the mid-range, especially in markets like China and India where competition has stiffened in recent years.

Samsung has no shortage of releases to hit this markets, but manufacturers native to those specific regions are finding ways to undercut them by large margins, and consumers are just as happy to support the homegrown talent if the price is right.

The sky isn’t falling for Samsung just yet, but the company had better be fast to respond to these ever-changing market conditions, or they risk slipping to a very dark place like their Taiwanese counterparts known as HTC. That said, mobile isn’t the only bit of business Samsung is into, and should their stronghold on the market eventually fade away they probably won’t be quite as hurt about it as other companies would be (but they’ll certainly be just as concerned).

[via KoreaTimes]

Quentyn Kennemer
The "Google Phone" sounded too awesome to pass up, so I bought a G1. The rest is history. And yes, I know my name isn't Wilson.

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