The past few quarters, Samsung Electronics has been on a bit of a hot streak, but like all things in life, it has to come to an end sometime.
As such Q2 2018 (April to June) projected operating profit is sitting around the $13.2 billion mark, which is $700 million more than the same period last year, but falls short of the $14.4 billion that the company posted in the final quarter of 2017.
While the company is certainly doing well, the slow down in continued profit growth could be attributed to less than expected uptake in the Samsung latest’s flagship phone – the Galaxy S9.
This is the assertion by Bloomberg, the smartphone market in general was cooling down in terms of shipments and sales, but Samsung was able to ride out the wave for the most part until now. Even their main rival Apple garnered less than initially expected sales of its all-screen iPhone X.
It could therefore mean that the slump felt across the industry is now finally hitting the South Korean manufacturer.
How Samsung reacts to this slowdown remains to be seen, but sales could be bolstered by the upcoming Galaxy Note 9, which is set for an unveiling next month.
Perhaps the best course of action though is to add some innovation to next year’s Galaxy S10 (unofficial name), with the previous two flagship phones from Samsung looking and feeling a bit too similar, and likely not prompting users from upgrading from one to the other.
If any manufacturer has shown sales resiliency in the face of fiascos (Note 7) or market trends, it’s Samsung. It should be interesting to see how they bounce back.