It’s not easy living up to expectations when you are consistently delivering stellar results and competing for the top spot of the market. We’ve seen it happen with Apple’s declining share price, despite the iPhone and iPad still selling like crazy. Now Samsung has apparently let down investors while seeing its highest-ever revenue and profit in a quarter, estimated at $49.9 billion and $8.3 billion respectively in their early guidance numbers.
Such profit represents a 47% year on year rise as well as 54% growth compared to last quarter. But Reuters reports that investors hoped to see profit closer to $8.89 billion, meaning Samsung’s early figures are 6.4% below expectations. Final earnings results should land July 26 but they shouldn’t differ too much from this.
Apparently concerns center on slowing growth and shrinking margins at the high end of the smartphone market. Analysts talking to Reuters and Bloomberg also cite disappointing sales of the Galaxy S 4. Although it easily became the fastest selling Android device ever, the increased expenses in marketing and distribution channels weren’t justified in investors’ eyes as it still wasn’t able to outpace Apple’s iPhone 5 launch figures.
Samsung sells more smartphones than anyone else when adding up the full range of devices it offers, though.
Of course, smartphones are just one part of the picture. Samsung also holds the lead in the memory chip market, which is expected to remain strong, and its component business is also doing well. But Apple’s lessening reliance on the South Korean firm for iPhone and iPad parts should give investors another thing to worry about.
The Galaxy S4 is a continuation of Samsung's flagship Android handset, in a sleeker and more modern version inside and out. The S4 features a 1.9 GHz quad-core Qualcomm Snapdragon 600, 2GB of RAM, and a 5-inch Super AMOLED Plus display. The S4 also packs 4G LTE, Wi-Fi 802.11 a/b/g/n/ac, IR LED Remote Control, MHL 2.0, NFC, and Bluetooth 4.0.
Downloads and Drivers
From the Forums
Subscribe to TechSpot
Receive a weekly update of our best features and tech news you don't want to miss: