Slow Galaxy S9 sales may lead to a drop in profits for Samsung, according to analysts

Slow Galaxy S9 sales may lead to a drop in profits for Samsung, according to analysts
For the past six fiscal quarters, Samsung has continued to grow its profits year-on-year thanks to strong growth in the semiconductor sector. However, if the latest predictions from industry analysts are correct, Samsung looks set to post a decline in Q2 of 2018, and it may all be down to slow smartphone sales.

According to analysts, Samsung’s profits are expected to sit at $13.64 billion for the three-month period, representing a decline of 6%, while overall sales will also see a decline of 5% to $53.4 billion. This is due, in part, to slow Galaxy S9 sales that are seemingly lagging behind those of the Galaxy S8 series. In fact, despite topping global sales during April of this year, analysts are now forecasting no more than 30 million sales for the Galaxy S9 lineup throughout 2018, which is the lowest number since the Galaxy S3 back in 2012. This may come as a surprise to many after the lineup’s initial popularity, but it’s claimed that demand leveled off shortly after the launch, with one of the main factors being an increase in competition from rival Chinese companies. Additionally, analysts claimed Samsung’s move to reduce profit margins in the low-end smartphone segment has also taken its toll on the company.

Despite the gloomy predictions for this quarter, analysts are expecting a big boost in profits during Q3 and Q4 of 2018, although these aren’t necessarily related to smartphone sales. Instead, it’s predicted once again that the South Korean company’s semiconductor business will be the driving force behind growth, although smartphones sales are expected to receive a boost thanks to the launch of the Galaxy Note 9.

Overall, the predictions for Samsung’s smartphone business aren’t overly positive, but with the redesigned Galaxy S10 slated to arrive in January, and the brand’s first foldable smartphone set for a launch in February, the popular brand is certainly on track to rebound during the first quarter of 2019.

source: The Chosun via: Wccftech

Related phones

Galaxy S9
  • Display 5.8" 1440 x 2960 pixels
  • Camera 12 MP / 8 MP front
  • Processor Qualcomm Snapdragon 845, Octa-core, 2800 MHz
  • Storage 256 GB + microSDXC
  • Battery 3000 mAh(31h talk time)
Galaxy S9+
  • Display 6.2" 1440 x 2960 pixels
  • Camera 12 MP / 8 MP front
  • Processor Qualcomm Snapdragon 845, Octa-core, 2800 MHz
  • Storage 256 GB + microSDXC
  • Battery 3500 mAh(35h talk time)

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38 Comments

1. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Well... Before jumping up and down in excitement; remember that Samsung also make tanks, missiles and jet engines! And lets not forget home appliances and electronics! Apologies for ruining your moment, my dear sheeple. G'Day!

3. apple-rulz

Posts: 2036; Member since: Dec 27, 2016

Seems the only one with a ruined moment is GreenMan, as usual he’s obsessed with Apple. Don’t worry though, when Samsung cuts you checks from their tanks, missiles, jet engines, home appliances and electronics divisions, you’ll be able to get therapy and hopefully be able to evict Apple from the spot they occupy in your mind. Have a nice day! :)

5. drunkenjay

Posts: 1657; Member since: Feb 11, 2013

what irony

19. TechNeck

Posts: 650; Member since: Aug 29, 2014

GreenMan is never obsessed with ANYTHING. Don't group him with those asinine people. He deserves the utmost respect.

29. Sparkxster

Posts: 1214; Member since: Mar 31, 2017

Greenman is awesome and knows what he is talking about ;-)

14. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

If that's the case, Samsung might shut down smartphone category as it's the burden of the profit.

15. piyath

Posts: 2445; Member since: Mar 23, 2012

I knew this would happen. Some idiot told me recently that they got more "traction" due to early launch this year compared to S8 thus will sell more units than S8......lol

30. Icent55

Posts: 73; Member since: Nov 02, 2017

Who da F are u....why are u so stup!d?... why are u so jobless? Must always be here talking trash like you on some pay roll? Let wisdom FALL on u

31. Icent55

Posts: 73; Member since: Nov 02, 2017

Who da F are u....why are u so stup!d?... why are u so jobless? Must always be here talking trash like you on some pay roll? Let wisdom FALL on u

17. worldpeace

Posts: 3129; Member since: Apr 15, 2016

Don't forget they also build Cruise Ships, and Burj Khalifa.

24. Leo_MC

Posts: 7228; Member since: Dec 02, 2011

Dude, the Apple users want a powerful companies in the same market, because that's what makes the iPhones better; not that Apple is competing but because powerful companies help drive innovations.

2. Venom

Posts: 3419; Member since: Dec 14, 2017

I don't think it's because the S9 is a bad phone because it's not. It's because most people are holding on to their current device since most smartphones today can last a few years. The S8 is only a year old, yet it has a lot of reasonable prices for it depending on where you get it. The only reason why I put the S9 over the S8 is because of the stereo speakers.

6. drunkenjay

Posts: 1657; Member since: Feb 11, 2013

s9 was pretty meh. it like the iphone 6 to the 8 plus, its the same design with little quirks that will excite you. I will be looking forward to the s10 and i think it will excite some people like they did with the iphone x

25. midan

Posts: 2724; Member since: Oct 09, 2017

"I don't think it's because the S9 is a bad phone because it's not. It's because most people are holding on to their current device since most smartphones today can last a few years." No the real reason is that other chinese companies are selling basicly same device lot cheaper and Samsung can't compete anymore with their prices. For massses there's no reason to pay S9 price, they buy something else. People haven't stopped buying phones, they are just buying other choices more than before. It wasn't long ago when Samsung was only android brand worth of android flagship money.

34. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Samsung offers much more bang for your buck than Apple does, so if people won't buy Galaxy S9 phones because of the lower cost of Chinese phones, then they sure as hell won't buy the iPhones either, as they're an even worse deal.

35. midan

Posts: 2724; Member since: Oct 09, 2017

Haha you just don't understand, Apple have iOS, that's why they are mostly immune for this situation. No-one can't offer same what Apple with cheaper price, that's the difference.

26. midan

Posts: 2724; Member since: Oct 09, 2017

"I don't think it's because the S9 is a bad phone because it's not. It's because most people are holding on to their current device since most smartphones today can last a few years." No the real reason is that other chinese companies are selling basicly same device lot cheaper and Samsung can't compete anymore with their prices. For massses there's no reason to pay S9 price, they buy something else. People haven't stopped buying phones, they are just buying other choices more than before. It wasn't long ago when Samsung was only android brand worth of android flagship money.

4. Ciro1900

Posts: 591; Member since: Dec 17, 2017

Laggy garbage

7. drunkenjay

Posts: 1657; Member since: Feb 11, 2013

Seems the only one with a ruined moment is Ciro1900, as usual he’s obsessed with Samsung. Don’t worry though, when Apple cuts you checks from their Tv's, Laptop and Imacs you’ll be able to get therapy and hopefully be able to evict Samsung from the spot they occupy in your mind. Have a nice day! :)

8. apple-rulz

Posts: 2036; Member since: Dec 27, 2016

Now that was an original comeback! Good thing you have a mind of your own ;)

18. iushnt

Posts: 3086; Member since: Feb 06, 2013

Seems legit though! Kinda tit for tat??

10. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

LMAOOOOO!

16. sissy246

Posts: 7083; Member since: Mar 04, 2015

"Seems the only one with a ruined moment is Ciro1900, as usual he’s obsessed with Samsung" Don't forget apple-rulz and piyath. They tell other they are absessed with apple but, here they are in yet another Samsung article.

23. NateDiaz

Posts: 1087; Member since: Mar 03, 2018

Yeah like you never commented on an Apple article?

9. mudcat626

Posts: 224; Member since: Jul 13, 2016

What do you expect from the Samsung Defense Force? They copy just like Headquarters......lol

12. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

And no other OEM copies huh?

11. Hollowmost

Posts: 421; Member since: Oct 10, 2017

Samsung semicon alone will make more revenue than LG electronics lol just stop

13. wesley.

Posts: 209; Member since: Aug 06, 2013

S9 and S9+ are too expensive.

20. Ciro1900

Posts: 591; Member since: Dec 17, 2017

is normal, the s9 is a trash mobile that idiot will buy a mobile with crapmoled screen with saw teeth, poor autonomy, lagg, obsolete camera, bad updates, boring design

38. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

By this logic Sony phones are more trash as not even Sony’s fans are buying their phones.

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