Owing to the latest
flagship smartphones’ sale volume wasn't good as expected, it is forecast that
the operation profit may slide sharply in the second quarter from April to June.
This year the operation profit of Samsung has reached 6.9 trillion won (4 billion
bounds), declining over 4% from the earlier year.
However, according
to some data from professional analysis institution, the operation profit of Samsung
has risen by 15% when compared with the first quarter, reaching 7.2 trillion
won. Those data didn't supply data of retained profits. And it didn’t display
data of each particular department.
The profit of Samsung
has fallen down since 3013. As a matter of fact, the market of smartphones has
tended to be saturated. Besides, more and more mobile phone vendors
participated in this field, which led the market being more and more
competitive.
Now Samsung had
suffered attacking from both sides. For one thing, Apple has been always
regarding it as a rival in the high-end mobile phone market. For another thing,
Samsung has to fight with newly Chinese vendors such as Mi and Huawei, which
have developed well and rapidly in the low-end mobile phone market. Samsung had
expected the sale of Galaxy S6 and S6 Edge could change the situation of
deficit. Nevertheless, the ideal sale profit wasn’t realized as people
imagined.
“The sale tendency
of Galaxy S6 and S6 Edge didn’t perform as expectation.” Greg Roh of HMC
Investment Securities said. He analyzed the delay of production had weakened
the sale volume of S6 Edge.
In order to
compete with small rivals, Samsung simplified its product line of middle and
low-end. In addition, it has increased the production of some mobile phones
which is fit for the strategy -lower price and high sale.
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