It might be too early to call, but is it possible that the once-mighty Samsung is plateauing? The Korean company could still be some way off from dropping out of the top three positions in global rankings, but its recent revenue forecast doesn’t bode well.
Ask the big wigs at the company about the money coming in, and they’ll tell you that for the second quarter of 2015 it will drop four percent from the previous year to $6.12 billion. If their calculation are correct, that will be the seventh straight drop in quarterly profits.
What is causing the drop? Well, simply put, the loss of quarterly revenue can be attributed to the company’s latest Galaxy S6 smartphones just not selling as well as expected.
“Market expectations for S6 sales were way too excessive. Analysts are revising down this year’s shipment forecasts for the S6 because demand for the Edge model is exceeding supply, while the other version isn’t selling well given its limited differences with the iPhone 6,” analyst Yoo Eui-hyung told Bloomberg.
The Galaxy S5 did manage to make up for some of Samsung’s losses, which at the time stood at 30 per cent, but apparently not enough.