Samsung’s Q2 Profit Flags On Lacklustre Galaxy Sales
Samsung Electronics is expected to post its smallest profit growth in more than a year for its second quarter, after experiencing lacklustre sales of its premium Galaxy smartphones.
Analysts expect the figures to show that Samsung’s smartphone sales dropped in the April-June quarter, following a more than two percent drop in the previous quarter as consumers flock to cheaper models from Chinese rivals such as Xiaomi.
Some analysts have been saying that Samsung’s lead over Apple in the global smartphone market is under threat due to the lack of technological innovation.
Samsung’s operating profit for second-quarter, to be delivered on Friday, is expected to be around 14.9 trillion won (A$13 billion) for the quarter, up 5.7 percent from a year earlier, but less than the record 15.6 trillion won posted in the March quarter, according to a Thomson Reuters poll.
Bloomberg reports, Samsung may have to sell close to US$14bn of its shares in the South Korean stock market as regulators try to curb the power chaebol families have over their businesses.
As previously reported, the new Galaxy Note will be launched on August 9 in New York.