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

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Galaxy S9
  • Display 5.8" 1440 x 2960 pixels
  • Camera 12 MP / 8 MP front
  • Processor Qualcomm Snapdragon 845, Octa-core, 2800 MHz
  • Storage 64 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 64 GB + microSDXC
  • Battery 3500 mAh(35h talk time)

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165 Comments

1. Phonehex

Posts: 764; Member since: Feb 16, 2016

Not too shabby though.

117. Skizzo

Posts: 403; Member since: Jul 14, 2013

I mean. this is to be expected. 1. S9 is barely any different from S8, so current S8 owners are not tempted to upgrade. ...and more importantly... 2. Most people are aware that the S9 is a "place holder" so to speak, until the reworked S10 comes out, so most people (myself included) are waiting to see the next one before they pull the trigger. The S9 isnt't a bad phone, on the contrary, just not enough of an upgrade/change to warrant a purchase knowing what's coming. All that considered, I'm surprised that it's doing as well as it is to be honest.

188. cocoy

Posts: 457; Member since: Oct 30, 2015

They should make a flat version of S10 to entice customers who doesn't want curve screen but want to buy Samsung flagship phone. It will help save some cost since flat screen is a little cheaper to produce than curve and may add to the number of units sold. I sure the number of people who want a flat screen phone are not that few.

2. iushnt

Posts: 3105; Member since: Feb 06, 2013

Success doesn’t come easy Samsung!! Not everyone is Apple!!

55. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

No, they aren't, not everyone hikes up their prices, because they have ridiculous profit margins as a result of their excessive company greed. I think the 85% of people in the world who prefer Android are happy that everyone isn't Apple. (85% is the actual global market share of Android OS).

73. c.m.s

Posts: 236; Member since: Dec 10, 2017

Prefer Android? Most of them don’t have a clue what ”Android” is and just ”prefer” a cheap phone.

74. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

That's what you would like to believe, in order to protect your precious Apple ego.

77. c.m.s

Posts: 236; Member since: Dec 10, 2017

Are you seriously believing most people care about what OS their phone are running? Regardless of manufacturer? They buy what they afford. You need to go out in the real world...

81. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

People can afford both IOS and Android devices, as Apple sells older generation devices at cheaper prices for people who can't afford the current generation.

187. Mikele

Posts: 166; Member since: Nov 19, 2013

My Android Xiaomi Redmi 5 Plus is more better than IPhone 6s plus in term of fluidity because I use these phones daily

136. piyath

Posts: 2445; Member since: Mar 23, 2012

Even with those ridiculous profit margins, even with thousand dollar price tags 15% people still buy iphones every year around the world, why is that? Android ASP is just around $250 while it is $700 for Apple, why is that? Because iPhone is the SUPERIOR PRODUCT!! Android is for economically challenged population in this world. Nobody knows what Android means even, why, they don't care, they just need a cheap phone to make calls, go Facebook etc.

158. bur60

Posts: 981; Member since: Jul 07, 2014

Superior in marketing yea. It comes down to what the outside world feeds into your brain. We are pretty simple minded us humans. Look at how you bend over for Apple. It's exactly part of the plan of these brands. I don't care if my phone has a Samsung logo or an apple on it. Put an eggplant on it I don't care, as long as I get what I think is worth the price. Don't forget that we are the products aswell.

163. sissy246

Posts: 7120; Member since: Mar 04, 2015

"iPhone is the SUPERIOR PRODUCT!" LMFAO Then why do you own a Samsung phone. I am still waiting for you to tell us. You said you own one so why?

148. toosmoove

Posts: 914; Member since: Sep 28, 2017

And not everyone posts comments that makes sense. Thanks for proving that.

4. legiloca

Posts: 1676; Member since: Nov 11, 2014

It's hard to top the already successful S8/+, especially if they're asking 300 USD too much just for stereo speakers, dual aperture camera, 2GB more RAM and "Intelligent Scan"

6. piyath

Posts: 2445; Member since: Mar 23, 2012

I think their 2018 pricing was on point. S9+ for $840 and S9 for $720 unlocked are very competitive prices for all that awesome hardware they offered. Best display, stereo speakers, wireless charging, IP68, gigabit LTE, super cameras etc. The real problem was their abandoned age old laggy software.

8. legiloca

Posts: 1676; Member since: Nov 11, 2014

Best Display - meh, I still see problems and they say it every year. IP68 - S8/7 have it Gigabit LTE - I would be happy if the coverage is Global, couldn't take advantage of it. Stereo speakers - not really a big deal tbh. IP68 - heck, even the S5 has it except the S6 Super Cameras - not really, I say it's good enough but Video recording capabilities? Way too many limits in 4K, 4K 60, 1080P 60. wtf.

7. Humanoid

Posts: 1226; Member since: Dec 11, 2017

S8/S8+ sold less than S7/S7e... Some ppl still believe tiny bezels bring sales

33. nodes

Posts: 1160; Member since: Mar 06, 2014

is that true? i thought S8/+ is the best selling phone from Samsung yet.

45. midan

Posts: 2910; Member since: Oct 09, 2017

Not even close :) S3 or S4 sold over 70 million units, Samsung is very far from those numbers.

143. Humanoid

Posts: 1226; Member since: Dec 11, 2017

S4 is still #1 .... +80 million units. This does not count S4 mini nor s4 active

54. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Apple is asking for just as much for the new generation of iPhone 8/8 plus, but they don't really offer anything other than facial recognition over the last generation, so even less features added.

90. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Bezels, you forgot bezels. iPhone has bezels galore to give owners as it becomes the second most hated cosmetic look on a phone besides a notch.

93. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Oh yeah, i completely iPhone 8/8 plus has a design from 2015, while the Galaxy S9 has a 2018 design, as the screen-to-body ratio of the S9 is just as good as the average 2018 flagship. Apple expects people to pay flagship money for a smartphone with a 2015 design in 2018, it's laughable. There are so many better devices to spend your money on.

99. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Another way to look at this... Big bezels, always in your hands or on your face, just as Steve wanted them. Now it's Tim's X that marks the spot, just put your face up to it to use it. Have a laugh, enjoy the day.

144. Humanoid

Posts: 1226; Member since: Dec 11, 2017

Iphone 6 or 6s still have tons of sales in Asia

189. Zack_2014

Posts: 677; Member since: Mar 25, 2014

Not 2015 but 2012 lol

11. bfuller2006

Posts: 85; Member since: Oct 31, 2011

Where is the Innovation? They are getting as stagnant as Apple. Almost makes you miss the old throw everything in but the kitchen sink to see what sticks.

12. Mreveryphone

Posts: 1822; Member since: Apr 22, 2014

The new UI isn't laggy at all. Samsung has done a good job at fixing that issue. I think a lot of people are waiting for the S10 as the S9 is similar looking to the S8. S10 should be on track with the numbers they predicted for this year...

13. sissy246

Posts: 7120; Member since: Mar 04, 2015

Agree with everything you said.

* Some comments have been hidden, because they don't meet the discussions rules.

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