Samsung Galaxy S5 Suffers Ahead of Note 4 Release, Samsung Sales Slump
Samsung always gave Apple and other tech giants a run for their money. The company has been selling most of its products well throughout the years but nothing is stable in the tech industry. Recent financial reports say that Samsung missed its profit target with smartphone sales suffering a decline. Can Samsung turn it the other way around or will Apple get ahead of it?
Samsung has been fighting off competition with Chinese producers and Apple alike. The company's net income amounted to $6 billion or 6.18 trillion won not including the minority interests in three months. The forecasts gathered by Bloomberg predicted the company's income to be around 6.83 trillion won. The shares fell from the estimates of the 17 analysts.
"The flood of low-end Chinese brands, such as Xiaomi, coupled with China Mobile's strong promotion of Apple's iPhone, are making life tougher for Samsung in Asia right now," executive director of Strategy Analytics, Neil Mawston explained.
"Samsung performed well in North America, but struggled in China."
According to The Wall Street Journal, the company's mobile division has been the biggest driving factor for Samsung. However, that division fell 30% in terms of performance thus creating a considerable dent on the financial postings of the company.
According to Bloomberg, Samsung shared its views via email: "The second quarter was affected by several factors including the slow global sales of smartphones and tablets and escalating marketing expenditure to reduce inventory."
"The appreciation of the Korean currency also chipped away at this quarter's operating profits." The company added.
The earnings also coincide with the company's Chairman, Lee Kun Hee, sent to the hospital following a heart attack. The family will be holding initial public offerings regarding other divisions of the company as they control most of the group. Samsung will reportedly be releasing its Galaxy Note 4 offering this September to compete with the iPhone 6.