Analyst sees slowing smartphone sales leading to lower fourth quarter earnings for Samsung

Analyst sees slowing smartphone sales leading to lower fourth quarter earnings for Samsung
Analyst Hyunwoo Doh from Jefferies has cut his operating earnings estimate for Samsung's fourth quarter, partly due to slowing smartphone sales. Doh sees slower growth in high-end smartphone demand and "inventory destocking". Other road blocks include a lower dollar versus the Korean Won, which means that each dollar that Samsung receives from the states is converted into fewer Won than last year.

Higher bonus payouts are also expected to put a dent in operating earnings for the three months. The company needed to spend 400 billion Korean Won ($380 million) to pay some workers a bonus for the 20th anniversary of Samsung's "new management initiative." Doh has cut his own estimate for Q4 operating earnings from 9.9 trillion Korean Won ($9.4 billion USD) to 9.3 trillion Korean Won ($8.82 billion USD).

The analyst expects things to turn around after the first quarter and the Korean based OEM does have some big products on the horizon, including the eagerly anticipated Samsung Galaxy S5. The newest Android flagship is expected to carry a larger 5.25 inch QHD AMOLED screen as Samsung tries to shake things up to reinvigorate its high-end line. Sales of the Galaxy S4 slowed down sharply after a terrific start. Samsung is also expected to reveal a sequel to the Samsung Galaxy Gear smartwatch at CES next week, along with some new Exynos chips.


source: Barron's via BGR

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58 Comments

1. nctx77

Posts: 2540; Member since: Sep 03, 2013

It's over Sammy! The next HTC is here! Lol!

4. Extradite

Posts: 316; Member since: Dec 30, 2013

Get rid off those cheap plastic Samsung: users are fed up with your lowbudget materials. Where is the oldskool Samsung, that use to use metal on there phone devices....? It's time to give us consumers what we pay for your highend products. We don't like plastic!

10. g2a5b0e unregistered

"Get rid off those cheap plastic Samsung: users are fed up with your lowbudget materials." Ooooooh, I see. That's why Samsung has sold way more phones over the last 2 years than other OEMs...because people are fed up with them. Makes perfect sense. /s

14. androiphone20

Posts: 1654; Member since: Jul 10, 2013

flooding the market with "plastic" phones doesn't translate to plastic = good, there's that part of the market that's okay with plastic and obviously another part that chooses premium build quality over plastic, sheesh, I thought you were smart enough to figure that out

16. Shatter

Posts: 2036; Member since: May 29, 2013

I could care less what material its made of, its just a phone. Most metal phones use cheap aluminum that is just as bad/cheap as plastic if not worse. It scratches, dents easily, weighs more, conducts electricity, holds heat in. Not all metal phones are bad some like Lenovos K900 are very durable and very well made. Instead of cheap aluminum the K900 is made of stainless steel. The best material for metal phones is magnesium alloy, its extremely durable and relatively cheap.

20. Extradite

Posts: 316; Member since: Dec 30, 2013

+1 for the K900. I did mention that phone aswell as the SonyZ and Lumia928 A phone with weight, and prestige used material looks "pukka" and "turns head" than cheap plastic. "HtcOne" is superb build. Though i own a S4 Korean S800 version and a Galaxy Note3 Exynos A15 version. It still feels cheap, with a highend handset, "flagship"

21. Extradite

Posts: 316; Member since: Dec 30, 2013

+1 for the K900. I did mention that phone aswell as the SonyZ and Lumia928 A phone with weight, and prestige used material looks "pukka" and "turns head" than cheap plastic. "HtcOne" is superb build. Though i own a S4 Korean S800 version and a Galaxy Note3 Exynos A15 version. It still feels cheap, with a highend handset, "flagship"

22. Extradite

Posts: 316; Member since: Dec 30, 2013

+1 for the K900. I did mention that phone aswell as the SonyZ and Lumia928 A phone with weight, and prestige used material looks "pukka" and "turns head" than cheap plastic. "HtcOne" is superb build. Though i own a S4 Korean S800 version and a Galaxy Note3 Exynos A15 version. It still feels cheap, with a highend handset, "flagship"

23. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Plastic feels cheapand tacky. It all comes down to how you want your device to feel since you're going to put a case anyway. btw Apple found a way to go around the whole "metal is heavy" idea you can look up Liquid Metal is

52. Arman

Posts: 47; Member since: Jul 08, 2013

"Most metal phones use cheap aluminum that is just as bad/cheap as plastic if not worse. It scratches, dents easily, weighs more, conducts electricity, holds heat in." dude do you even know what aluminum is?.. holds heat in !!!! metal body translate to better heat transfer .. weighs more?? so why ipad air structure(same screen AREA) with bigger battery and smaller volume has less weigh than note 10.1 (almost 200 grams!!!) .. ?? cheaper than plastic ??? you don't have a clue.. aluminum isn't cheaper and most of all producing an aluminum structure needs more time and cost.(so much more some times 10 times a plastic structure) wanting a premium feel is your right as a customer, if you think plastic is enough for you don't bother, just buy a low quality high spec phone and enjoy your ghz and Mega bytes.. some people want to enjoy premium body and just enough amount of ghz & mega bytes..

53. willard12 unregistered

I'm not sure where you are getting your numbers. But aluminum goes for 40 cents per pound. I'm not sure if you think that is premium or if a can of Coca Cola is premium. If so, I guess that's what the Galaxy F is for.

18. PapaSmurf

Posts: 10457; Member since: May 14, 2012

So please explain to me why Samsung continues to outsell it's predecessor every year with the Galaxy S series?

24. Extradite

Posts: 316; Member since: Dec 30, 2013

The original Galaxy advertised it as having the best specs, same as S2, S3 and even S4. Sseries is pushing sale cause of it's specs. Apple iPhones sales due to being to able pose, showoff, i'm cool, the trend.

25. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Smurf, did you really have to ask? Samsung devices with the S branding have always been made of plastic, nothing has changed on that regard. What has changed? Perfomance, display, features and gimmicks with loads of marketing...NOT the plastic.

31. PapaSmurf

Posts: 10457; Member since: May 14, 2012

"It all comes down to how you want your device to feel since you're going to put a case anyway." Thanks for proving my point with your other comment. You clearly can't accept that fact that majority of the people in the world do not care about plastic or not. Guess what? You use plastic everyday. Do you really think that having a phone made of glass or aluminum makes you feel like you're above others? Samsung clearly knows what they're doing. Sales figures and devices sold each quarter prove your comment invalid. Thanks for trying to prove me wrong, again, but you have failed - again.

40. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Oh God no, not this sh*? again. " Thanks for trying to prove ME wrong". ITS NOT ABOUT YOU, if someone prefers a metal Samsung device then should he keep it to himself because Smurf is going to shoot him down, by mentioning Samsung selling smartphones by the millions? that's his choice stop trying to make everything about YOU.

28. g2a5b0e unregistered

Thanks for enlightening me, kid. Don't know what I'd do without you. Now go back to your Saturday afternoon cartoons.

29. androiphone20

Posts: 1654; Member since: Jul 10, 2013

its always a pleasure to give education for free even when one chooses to be brash or insulting, it must be embarrassing to be old and ignorant, I'm hanging to out with my gf today so the cartoons are all yours

32. PapaSmurf

Posts: 10457; Member since: May 14, 2012

It's funny you mentioned him being ignorant, considering your ignorance goes full throttle in a lot of your comments. You're trying to act smart and pretend like you know what you're talking about, so I have zero sympathy for you. You got put in your place, now stop before you embarrass yourself even more. If you can't handle the heat, then get out of the kitchen, kid.

33. androiphone20

Posts: 1654; Member since: Jul 10, 2013

" You're trying to act smart and pretend like you know what you're talking about, so I have zero sympathy for you." First you've been saying this over and over and again seriously its getting old. I remember your words that went by "I got so many people banned on this site", if this is your way of doing it then you've got to look for a new strategy cuz this trooper is here to stay. I'm different from anyone you've ever met and I'm here because people are not going to remain biased towards your BS, you don't like it? too bad

36. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Is the little kid mad? I'm here to talk about technology. When you're ready, let me know. I don't want to hear you whine about your problems. Thanks kiddo.

41. androiphone20

Posts: 1654; Member since: Jul 10, 2013

oh the irony, PAPA SMURF

48. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I have 3 different type of casing for my note 2 and 3 different types of casing for note 3, for each i would buy them a stainless steel case. Putting metal case over plastic for Samsung device give me a peace of mind compare to my iPad which I do get little electric shock from the all aluminum case so only plastic book case for them. The electric shock can be quite dreadful when the thing is charging.

39. g2a5b0e unregistered

He's saying it over & over again because it's true. It's obvious from your comments that you're a young kid who truly doesn't know a ton about tech. You call me ignorant, but your ignorance shines through with every post you make. The sandbox is waiting. The big kids will still be here when you get back.

42. androiphone20

Posts: 1654; Member since: Jul 10, 2013

I may not know much about Android but clearly you have no idea how I met Smurf. He was and still is the college kid. Besides this site doesn't go beyond mobile tech so I pretty much visit sites like The Verge and TechCrunch, and thank goodness I don't find people like some *ahem* of the guys here. The Saturday afternoon cartoons are waiting remember

47. g2a5b0e unregistered

I don't care about how you met Smurf. That has no bearing on anything being discussed here. I don't even care that Smurf is a college kid. It's not so much about age as it is about maturity & intelligence. The difference between you & him is that you possess neither. I generally don't take to the boards to bash people & there are folks a lot worse than you on here, but you're the one who decided to rub me the wrong way, so you got it. That's as far as I'll go on the subject. Stay out of my way & I'll stay out of yours.

55. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Apple's YEILD problems are also getting old ... and sickening as it can only convince the iGnorants.

34. androiphone20

Posts: 1654; Member since: Jul 10, 2013

You know what college kid, I encourage you to keep trying maybe you'll get to me...one day. Good luck on that one

38. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Glad to hear my words affect you that much. Thanks for taking the time to click on my username, read my bio, and respond to me. Yeah, I sure didn't get to you alright. Want to talk about technology now, which is what the article is about, or should I refer you to a counselor?

43. androiphone20

Posts: 1654; Member since: Jul 10, 2013

"Glad to hear my words affect you that much." wait, I'm the one living in your head all this time since idk last year summer, fall? Guess what, it was rent-free. Getting back at technology what where you talking about btw?

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