Report: Samsung will ship fewer smartphones than expected in 2018 thanks to weak Galaxy S9 performance

Report: Samsung will ship fewer smartphones than expected in 2018 thanks to weak Galaxy S9 performance
A report published today cites sources close to Samsung as saying that the large tech giant will not meet its target of shipping 350 million smartphones in 2018. Right off the bat, that goal is more aggressive than previously believed. Combined with the fact that sales of its flagship Galaxy S9 are struggling in China, reaching deliveries of 350 million units this year is "far-fetched" says an industry source.

Samsung originally estimated that it would ship 320 million handsets in 2018. But strong pre-orders of the Galaxy S9 led the company to hike its projection by 9.4% to the current level of 350 million. However, that figure appears to be too optimistic, especially since the company shipped 319.8 million handsets last year. That was a 3.3% gain over the 309.4 million phones it shipped in 2016. In 2015, Samsung delivered 319.7 million phones. That means the company essentially had zero growth in shipments from 2015 to 2017, according to Strategy Analytics.

For the first quarter of 2018, Samsung shipped 78 million smartphones. Noh Geun-chang, an analyst from HMC Investment & Securities, forecasts shipments of 73 million phones for Samsung in the second quarter. Noh expects to see the Galaxy S9 and Galaxy S9+ under-perform during the three months running from April through June. For the whole year, he estimates that only 30 million Galaxy S phones will be shipped, the lowest such total for the company's flagship line since 2012. That year, Samsung released the Galaxy S III.

Today's report says that Samsung's mobile division has been told by top brass to pull out all the stops when it comes to marketing, in order to pump up sales. The company's market share in the largest smartphone market in the world, China, declined to under 1% last year from 2013's 20%.

A trio of regional securities firms expect Samsung's smartphone unit to report operating profits of 2.25 trillion won to 2.3 trillion won ($2.03 billion to $2.1 billion USD) in 2018, a decline of more than 40% year-over-year.  Next up for Samsung is the Galaxy Note 9, expected to be unveiled on August 9th.

source: TheInvestor

Related phones

Galaxy S9
  • Display 5.8 inches
    2960 x 1440 pixels
  • Camera 12 MP (Single camera)
    8 MP front
  • Hardware Qualcomm Snapdragon 845, 4GB RAM
  • Storage 64GB, microSDXC
  • Battery 3000 mAh
  • OS Android 10
    Samsung One UI
Galaxy S9+
  • Display 6.2 inches
    2960 x 1440 pixels
  • Camera 12 MP (Dual camera)
    8 MP front
  • Hardware Qualcomm Snapdragon 845, 6GB RAM
  • Storage 64GB, microSDXC
  • Battery 3500 mAh
  • OS Android 10
    Samsung One UI

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165 Comments

184. johnh3

Posts: 156; Member since: Aug 23, 2012

Not suprised. The competition get harder from brands like Huawei in the flagship segment. And from the new Nokia in the low and middle class devices. Especially in Asia, Russia and Europe. OnePlus groving fast to. But I think Samsung will be alright. They almost got a monopoly situation in the US market for android phones with strong carrier relations. And I dont see that it will be changed anytime soon.

181. sissy246

Posts: 7129; Member since: Mar 04, 2015

Hay piyath Still waiting to here why you own a s9 and a s9+ when you obviously hate Samsung.

180. Railgem

Posts: 3; Member since: Jun 24, 2018

Bring back the IR sensor and I will be a Samsung user once again. And a good price, too.

176. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

People here are crying and fighting as if Samsung is going to shut it's mobile division. We all hear such news about Apple & Samsung where analyst say that they both aren't doing anywell and they will ship less smartphone than last yrs but we all know that these are just rumours which we hear every. So better use what you like instead of cring and fighting for a certain brand.

161. CreeDiddy

Posts: 2289; Member since: Nov 04, 2011

Bottom line is that you can’t all your cake and eat it too...they have phones that are less than $150 in their lineup and they are trying to sell a Note that is over $900. Too big of a variation to be considered a high end manufacturer...

159. erizlovect

Posts: 6; Member since: Aug 12, 2013

1.competition from china brand. Same performance but cheapest. 2.not to deferent performance from previous model.

156. rouyal

Posts: 1603; Member since: Jan 05, 2018

Everytime I see someone pull out a Samsung phone, and I see that bloated ghetto interface with ugly icons, I wonder how they sell as many as they do in the first place. It churns my stomach just glancing over at the screen. Samsung needs to fire their UI designers, remove all the bloat, and use stock UI. iOS is so much more refined than the hot garbage Samsung put on theirs.

170. mootu

Posts: 1541; Member since: Mar 16, 2017

And yet every year 100 million more people use Samsungs version of Android over Apples users of IOS, Why would Samsung fire their UI designers when they are so successful? That must really stick in your throat.

190. rouyal

Posts: 1603; Member since: Jan 05, 2018

Because they buy the cheap third world Samsungs, not because it’s better. Hold a Samsung and an iPhone in front of them and they can pick one for free, what do you think they’ll choose?

175. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

I feel exactly the same when i see an iPhone. The UI is ugly, and their homescreen is filled up with unsightly apps with uninspiring icons. It churns my stomach to see such a messy homescreen, when i'm so used to having my own personal homescreen that is so much cleaner and nicer to look at. The completely lack of widgets really also makes it look so basic and boring. IOS isn't refined, IOS is basic, boring and messy to look at. Samsung's UI is beautiful, which is why Google's Android P is taking a lot of design clues from Samsung's UI.

178. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Did Apple start using a app drawer yet.... Apple home screens remind me of Grandma's PC desktop with shortcuts all over. Just a s**t show to look at really.

155. Foxgabanna unregistered

Ha y’all ninjas mad! Not everyone can play hardball like Apple. While Samsung may be the king in the Android world, people voted with their wallets and regardless what you all say, iOS is killing it mane. Wrote from my glorious iPhone X.

153. imlegitcusimthasht

Posts: 306; Member since: Jan 30, 2017

ya'll apple fan boys hating need to know that this ain't about brand loyalty like what y'all think it is. We comment back because it's f**kn personal. Y'all the ones tryna make us feel stupid about buying a Samsung device when it's clearly great, or if not, then it would arguably be greatest. If you had drop your hard work earned cash on an old used Camry, how would you feel if when someone questions your choice to buy a Camry, they dont know how hard you work to own one, even if it's just a Camry and not a BMW or something kf a higher status and more featured pack. So in the end, if you ain't got nothing nice to say. Get the f**k out

145. wesley.

Posts: 218; Member since: Aug 06, 2013

S9 and S9+ are too damn expensive. Exynos versions also have poor battery life. Camera is touted as amazing but overexposes every shot, with unnatural colors.

138. Godlymansean

Posts: 339; Member since: Apr 14, 2017

I'm sure it'll pick back up come the 10.

134. chris2k5

Posts: 291; Member since: Nov 17, 2012

Lol Apple destroyed Samsung. The iPhone X which every android fan boy was saying was going to not sell outsold expectations. Then Samsung S9 failed on the market. No one buys crap anymore from Samsung.

139. mootu

Posts: 1541; Member since: Mar 16, 2017

Errr!, last month the S9 and S9+ were the worlds best selling phones, iPhone X came 3rd. They are still the worlds best selling OEM with over 320 million phones per year. They are hardly failing. This is just one article from one analyst you know just like the ones that said the X was failing. You do know it's all guesswork and attempts to manipulate the markets, right?

146. midan

Posts: 3261; Member since: Oct 09, 2017

"Errr!, last month the S9 and S9+ were the worlds best selling phones, iPhone X came 3rd." Last time i checked april wasn't last month. S9 was best selling for their first full month, that shouldn't be surprising, same happens every year and which happens too, after the first peak sales they are already behind because sales slow down very fast for Samsung, looks like it happened even faster this year.

169. mootu

Posts: 1541; Member since: Mar 16, 2017

We will see when the next set of figures are released. i honestly don't care as i don't buy or use Samsung phones, it's just fun to watch the herd get salty.

88. Jrod99

Posts: 782; Member since: Jan 15, 2016

Wow PA. You really hit a nerve with this article. Not really a big deal over all. With all the tech and power going into phones now you really don’t need to upgrade every year. Not to mention the prices too.

48. youssef44

Posts: 547; Member since: Apr 29, 2014

That's normal when you don't make new things and features in the new phones ! Not only with Samsung but with all companies!

42. Loubielou

Posts: 603; Member since: Jul 11, 2012

It is just not Samsung who as really spoiled the Mobile Market ,it is Apple who Over Valued there iPhones and seem to have got away with doing this,so if Apple can Over Value there phones,the others will put there prices up to match Apple and thought they would make more profits,2018 will be a weak Sales year with people not purchasing new phones and buying sim deal contracts instead,that is why Carphone Warehouse is struggling now,Sim Deals are a lot cheaper than 24 month phone contracts

41. Loubielou

Posts: 603; Member since: Jul 11, 2012

It is just not Samsung who as really spoiled the Mobile Market ,it is Apple who Over Valued there iPhones and seem to have got away with doing this,so if Apple can Over Value there phones,the others will put there prices up to match Apple and thought they would make more profits,2018 will be a weak Sales year with people not purchasing new phones and buying sim deal contracts instead,that is why Carphone Warehouse is struggling now,Sim Deals are a lot cheaper than 24 month phone contracts

38. sleepypandaeyes

Posts: 422; Member since: Apr 12, 2015

The android market is far to competitive. Incremental updates are juat not an option, whereas they are with the iPhone as there is no compition. The S9 are still great phones which do not lag!!!! *crazy eyerolling The A8

34. obedchuni

Posts: 341; Member since: Jun 16, 2014

Hope Samsung can rebound but the price is too stiff, I think Apple Charges ultra premium for their OS, well samsung you get free os from google then you skin them, and craft a beautiful phone but price it accordingly, also mid range phone lacks sensor and the soc are terrible, how can they compete with chinese phone with such a low grade soc, Chinese Manufactures put 845 chip and sell their phones around 500 dollar - 650 max where as samsung can't afford to do that, instead competing with Apple they should focus on China and Chinese market.

31. scarface21173

Posts: 702; Member since: Aug 17, 2014

I purchased the s9+ 2 weeks ago, just because there was a really good deal on.

60. piyath

Posts: 2445; Member since: Mar 23, 2012

I wish you good luck. Luck is all you got in the end with Samsung phones these days.

121. sissy246

Posts: 7129; Member since: Mar 04, 2015

Then why do you own Samsung phones?

78. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

It was a great decision, and it's going to treat you well. Don't listen to Piyath, he's a designated Samsung hater, and he has been for years. There is a reason that the Galaxy S9+ is called one of the best smartphones, and you're going to discover why yourself when you start using it.

96. scarface21173

Posts: 702; Member since: Aug 17, 2014

Yeah i upgraded from the s7 edge, which is still an excellent phone.

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