Samsung expects Q1 profits to drop 30%, but declines are slowing
Samsung on Tuesday provided investors with a new forecast for its March quarter sales, indicating that earnings declined yet again, likely falling 30 percent from the same period a year ago.
Despite continued losses, Samsung's projected earnings are actually an improvement from the last two quarters, when sales fell 36 percent in the fourth quarter of 2014, and a whopping 60 percent in the quarter before that.
Still, the March frame will represent the sixth consecutive quarter that Samsung sees declining sales, as noted by The New York Times. Samsung has been squeezed at the low-end by cheap Chinese smartphones, while Apple's premium 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus have attacked the South Korean electronics maker from the high end.
But the preliminary March quarter results are also better than analysts had expected, leading the market to believe that Samsung could be turning things around. In particular, the March results represent the three-month period before the launch of the new flagship Galaxy S6 and Galaxy S6 Edge.
Despite criticisms comparing the Galaxy S6 design to Apple's iPhone, and a new "bendgate" controversy aimed at Samsung, initial reviews for the Galaxy S6 have been generally positive, with tech journalists saying the new device is the best Android handset available on the market.
Samsung's expected decline in the March quarter will contrast with Apple's own earnings, due to be reported on April 27. It's generally believed that it will be another record quarter for Apple, riding high on continued strong sales of the iPhone 6 and iPhone 6 Plus.
Recent data suggests Apple was on track to sell at least 54 million iPhones in the just-concluded March quarter, while more bullish estimates go as high as 58 million units. In the same quarter a year ago, Apple sold a then-record 43.7 million iPhones.
Despite continued losses, Samsung's projected earnings are actually an improvement from the last two quarters, when sales fell 36 percent in the fourth quarter of 2014, and a whopping 60 percent in the quarter before that.
Still, the March frame will represent the sixth consecutive quarter that Samsung sees declining sales, as noted by The New York Times. Samsung has been squeezed at the low-end by cheap Chinese smartphones, while Apple's premium 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus have attacked the South Korean electronics maker from the high end.
But the preliminary March quarter results are also better than analysts had expected, leading the market to believe that Samsung could be turning things around. In particular, the March results represent the three-month period before the launch of the new flagship Galaxy S6 and Galaxy S6 Edge.
Despite criticisms comparing the Galaxy S6 design to Apple's iPhone, and a new "bendgate" controversy aimed at Samsung, initial reviews for the Galaxy S6 have been generally positive, with tech journalists saying the new device is the best Android handset available on the market.
Samsung's expected decline in the March quarter will contrast with Apple's own earnings, due to be reported on April 27. It's generally believed that it will be another record quarter for Apple, riding high on continued strong sales of the iPhone 6 and iPhone 6 Plus.
Recent data suggests Apple was on track to sell at least 54 million iPhones in the just-concluded March quarter, while more bullish estimates go as high as 58 million units. In the same quarter a year ago, Apple sold a then-record 43.7 million iPhones.
Comments
Yeah ... declines are slowing .... because ... well ... look at the BEST android phone available ... it's iPhone with f***ng Samsung name on it!
Is this just for mobile or does it include their other divisions. Do like their TV's and refrigerators. Not in love with their monitors or phones.
There will be spin after spin after spin concerning this news. Upsetting the $amsung cart...
Mac Owners Should Hold Off on New Samsung T1 Flash SSD
http://www.macobserver.com/tmo/article/mac-owners-should-hold-off-on-new-samsung-t1-flash-ssd
Yikes.
That might make sense if that phone was currently for sale.
Sadly, they're still beating the snot out of the other Android OEMs. Samsung's current slide is a perfect opportunity for one of them to create a compelling device, and take the number 2 spot, but I doubt that'll happen.
... To conquer death, you only have to die ...
Does anyone know if Samsung actually paid Apple the money they lost in the suit?
Does anyone know if Samsung actually paid Apple the money they lost in the suit?
Of course not.
Despite criticisms comparing the Galaxy S6 design to Apple's iPhone, and a new "bendgate" controversy aimed at Samsung, initial reviews for the Galaxy S6 have been generally positive, with tech journalists saying the new device is the best Android handset available on the market.
I place tech journalist’s reviews on the same plane as movie critic’s reviews. They are often completely out of touch with the public response.
Of course not.
Just curious why we never hear anything about that. It does seem like a court ruling does not really buy you anything.