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Samsung's CFO says the financial outcome for Q2 is not good, Galaxy S5 and mid-to-low range phones to blame?

Samsung's CFO says the financial outcome for Q2 is not good, Galaxy S5 and mid-to-low range phones to blame?
Samsung's chief financial officer, Lee Sang-hoon, warned the company's investors that the financial situation during the financial Q2 of the year doesn't look “too good”, as profits are expected to go down. As a result, Samsung's stock price fell roughly 2% to $1,296.4 (1,320,000 KRW). Previous forecasts have already caused Samsung's shares to dwindle 8.5% down during the last month, and the CFO's statement added even more fuel to the fire. The reason for this unfortunate financial situation? Well, it seems that the culprit might be no other than the Galaxy S5 flagship and its sales.

Despite the numerous reports that the Samsung Galaxy S5 is selling pretty well both at home and in the US, the fierce competition from the likes of Sony, HTC, and LG has allegedly already undercut the sales of the latest Galaxy, thus decreasing Samsung's income. Additionally, KTB Investment & Securities, a Korean financial institution, blamed the company's expected not-so-great financial outcome mostly on weak demand for its low-end and mid-range devices.

It is predicted that Samsung might report year-over-year drop of its operating profits of roughly 16% and a general decrease of shipments by 12.5% - from 88 million to about 77 million units. These expectations already stray away from initial expert predictions that Samsung will ship more than 90 million units during Q2.

Samsung already experienced a slight loss of global market share during the first quarter of the year. The manufacturer's due to release its financial report for the financial Q2 of 2014 sometime in the beginning of July.

Samsung's CFO says the financial outcome for Q2 is not good, Galaxy S5 and mid-to-low range phones to blame?



source: The Wall Street Journal, Electronista via Pocket-lint

60 Comments
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posted on 26 Jun 2014, 05:53 12

1. clevername (Posts: 1436; Member since: 11 Jul 2008)


Uh oh. Is this the start of a trend?

posted on 26 Jun 2014, 06:48 7

14. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)


They need to change the design anyhow and somewhat prices too.

posted on 26 Jun 2014, 07:14 2

25. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)


I agree about design but what's wrong with prices?

posted on 26 Jun 2014, 07:54 9

40. marcski07 (Posts: 598; Member since: 25 Apr 2014)


prices of mid/low end phone are wrong, and somewhat not attractive too, they like mini-mes of S line, but retarded. there are local brand that are better and good looking and good speced, low/mid phones, like here in Philippines, Cherry Mobile, Myphone, Star Mobile, and some Chinese phones are taking over with their nice features. in my own perspective, samsung focused on competing iPhone, that they forgot the low/mid end phones... Sony and huawei is killing it in here, they have beautiful mid-ranged phones, and LG too, with their L series... and Myphone or what they call "Filipino Phone" one of the affordable android phone you can buy,. you can browse internet, watch YouTube, play games and watch even tv, or listen to radio.. for just $50 :)

posted on 26 Jun 2014, 08:36 1

52. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)


Now-a-days flagships are bit pricey. This could be one of the reason for blaming S5 sales otherwise nothing is wrong with S5 except design.

posted on 26 Jun 2014, 09:26 1

55. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)


"Now-a-days flagships are bit pricey."

Agree they are pricey but talking about Samsung's flagships they has +/- the same price as any other flagship (at least here in Europe).

posted on 26 Jun 2014, 08:16 4

45. WahyuWisnu (Posts: 1001; Member since: 29 May 2014)


I propose samsung to simplified the model line up and use German way of model number (mercedes benz and BMW).

Ex.
Galaxy S - highest spec
Galaxy E - medium spec
Galaxy C - Low spec
Galaxy A - Lowest spec

phone...
Galaxy S mini, Galaxy S, Galaxy S maxi (same spec, different screen size)
Galaxy E mini, Galaxy E, Galaxy E maxi (same spec, different screen size)
Galaxy C mini, Galaxy C, Galaxy C maxi (same spec, different screen size)
Galaxy A mini, Galaxy A, Galaxy A maxi (same spec, different screen size)

posted on 26 Jun 2014, 08:25 1

49. sar44 (Posts: 278; Member since: 14 Apr 2014)


noobs-haters got their way
samsung made isocell, improved amoled, on of best battery life and speed, wateproof. others did nothing, except that the speakers for kids, gimmick qhd, which only harm.

posted on 26 Jun 2014, 08:34 2

51. sar44 (Posts: 278; Member since: 14 Apr 2014)


On the contrary worsened, htc removed OIS, Sony made ​​the screen red and distorting oversaturated colors, and worsened the sound in the headphones, LG made ​​qhd and twisted sharpness because of what the image will halo.

posted on 26 Jun 2014, 11:53 1

66. engineer-1701d (unregistered)


your the noob here we samsung fans wanted and they even said a new type of finish and look to the phone and it was crap all, just the worst ever, iso nice, amoled ok good battery ok speed +/- water resistant not proof, no wireless charge gimmick hr monitor, no front speakers big hurt because the s5 speakers loud but sucks. i wont leave my gs3 untill better look and spec my gs3 has 2 gb ram so does the 5 the note has 3gb ram

posted on 26 Jun 2014, 11:43 1

64. engineer-1701d (unregistered)


its whats we all told them when they annouced this crap no one will buy it. a stupid heart rate monitor and no real tech updates and ugly as hell.

posted on 26 Jun 2014, 19:46 1

82. corporateJP (Posts: 2431; Member since: 28 Nov 2009)


This is what happens when you flood the market with garbage, you lose that brand luster.

Try a Galaxy Ace or Centurion, let me know how that works out for you...

posted on 27 Jun 2014, 07:28 1

86. Ashoaib (Posts: 3229; Member since: 15 Nov 2013)


their ugly design is killing them... beastly spec'd enclosed in unattrative shell... there are many customers who never bother to understand the specs, they just look at the design and become fan. For example, why such a low spec'd apple is so popular? bcoz apple know most products are sold on its percieved value not on real value... so apple always try to bring something which appeal to our eyes, bcoz we can see better than what we can read... once we become fan then we create self justification by ourself to justify our choice... this is what keeping apple's customers and business intact... seeing is believing...
beside that mid range and low range of samsung are not decently spec'd like chinese competitors... I have seen the price of samsung's mid end and low end are so high that you can find something else decently spec'd in same price

posted on 26 Jun 2014, 05:57 7

2. express77 (unregistered)


Their flagships are great but their mid/low rangers are crap nowadays. And also the design.

posted on 26 Jun 2014, 06:09 14

9. hipnotika (Posts: 353; Member since: 06 Mar 2013)


galaxy s5's design is more ugly than mid/low devices

posted on 26 Jun 2014, 07:35 14

34. marcski07 (Posts: 598; Member since: 25 Apr 2014)


you're wrong because they are all the same!!!! same! same! same! that's why they find samsung boring!

posted on 26 Jun 2014, 06:11 12

10. ryq24 (Posts: 738; Member since: 17 Oct 2011)


Totally agree. Lg sony and htc have better specs in their mid range phone than samsung.

posted on 26 Jun 2014, 07:53 1

39. express77 (unregistered)


*ranges*

posted on 26 Jun 2014, 05:59 5

3. timukh (Posts: 295; Member since: 04 Feb 2013)


In my country at the time of launch s5 was priced at $833. Now it is selling at $600...!! The price cut was due to low sales. But samsung officials said it wasnt true. Well now i guess that it was actually true..

posted on 26 Jun 2014, 06:01 2

4. nokia12 (Posts: 519; Member since: 19 Nov 2013)


let me guess you are from india ? :D

posted on 26 Jun 2014, 07:49 3

37. DocOc (Posts: 138; Member since: 23 Apr 2014)


Why would anyone pay $833 for a freakin phone??? I can get a 60 in flat screen TV for $600!!

posted on 26 Jun 2014, 08:18 1

47. marcski07 (Posts: 598; Member since: 25 Apr 2014)


WOW, 60 INCH FLAT SCREEN? FOR $600, what country where you from?in my country 60inch flat screen tv costs $1000+

posted on 26 Jun 2014, 11:56

68. engineer-1701d (unregistered)


my 55 inch tv cost $2400

posted on 26 Jun 2014, 11:55

67. engineer-1701d (unregistered)


a bad tv for that walmart tvs,

posted on 26 Jun 2014, 06:01 7

5. chocowii (Posts: 453; Member since: 30 Jan 2014)


Youre on the top, only one place to go is to go down.

posted on 26 Jun 2014, 06:01 6

6. darkkjedii (Posts: 22054; Member since: 05 Feb 2011)


Simply put, just as with apple and the iPhone, it's time for Samsung to revamp the galaxy. Absolute great device line, but the looks are bland, although pretty, and the features are nice but not a huge leap. Not much of a jump, between s4 to s5. Apple and Samsung are in very good shape, but we all know, both could blow the kid off, if the really wanted too.

posted on 26 Jun 2014, 06:51 6

16. StraightEdgeNexus (Posts: 3689; Member since: 14 Feb 2014)


Agreed. They make S devices to compete with iPhones, so they must make their designs attractive. Also the touchwiz ugliness and bloat vs. iOS elegance and smooth performance should be solved. +1

posted on 26 Jun 2014, 07:08

21. darkkjedii (Posts: 22054; Member since: 05 Feb 2011)


I think the s6, and note 5 will change quite a bit. +1 back atcha

posted on 26 Jun 2014, 11:58

69. engineer-1701d (unregistered)


its called android stock hahahaha i like my touchwiz but i like tizen look better make touchwiz look like tizen/android L

posted on 26 Jun 2014, 07:09 1

22. darkkjedii (Posts: 22054; Member since: 05 Feb 2011)


Oops lid, and to.

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