Analysts: Samsung Galaxy S6 Unable To Prevent 2 Straight Years Of Earnings Drop
Samsung’s market presence is diminishing, and unfortunately for the company, the Korean tech giant’s efforts to stabilize its earnings might not pay off this year. According to market analysts from FnGuide Inc., Samsung is expected to register a net profit of 20.8 trillion won ($1.91 billion) in 2015, which would represent a 6% drop from last year’s estimate of 22.1 trillion won.
Things look even bleaker for Samsung when putting the 2013 figures next to this year’s expected earnings, and some believe that the company’s best days on the market are pretty much gone. More details below.
The Samsung Galaxy S6 Might be Unable to Prevent Sammy’s Earnings Drop
Assuming that the numbers above will add up once Samsung reveals its estimate net profit for 2014 later this month, then the company will register an earnings drop of 27.3% compared to year 2013. An estimate shows that the company’s cumulative revenue for 2014 should be around 205.4 trillion won, down 10.15% on-year. This figure represents the company’s first annual drop in nine years.
Analyst Roh Keun-chang from HMC Investment & Securities Co. believes that the record-high earnings of 2013 were possible because at that time Samsung had little competition on the Android market. The story is much different nowadays, and with emerging companies like Xiaomi becoming forces to be reckoned with, it looks like Samsung’s reign over the Android smartphone market may have come to an end.
Some believe that better performance in memory chips could mitigate some of these losses and help Samsung in maintaining its market presence, but opinions are split and other people in the industry don’t think the Samsung Galaxy S6 will have what it takes to restore the company’s glory, especially since Apple joined the large-screen smartphone market and also because there are numerous Chinese smartphone makers who offer top-tier smartphones at competitive prices.
Whatever the case, Samsung may no longer dominate the Android market and perhaps it will never regain its former influence, but the Korean tech giant is far from being in the red so there’s still plenty of time for things to pick up. We’ll just have to wait and see how the Samsung Galaxy S6 will be received by the market.