Powered By Blogger

Thursday, July 09, 2015

The Bad Performance of Galaxy S6 Has Encumbered the Profit of Samsung

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.

No comments:

Post a Comment