Slow Galaxy S9 sales end Samsung's record profit run

midian182

TechSpot Editor
Staff member

Q1 2018 was Samsung’s sixth record quarter in a row, but it warned that Q2 would see a slowdown. While the company’s earnings guidance has profit for April to June up by around $700 million YoY, the $13.2 billion it made is smaller than the $14.4 billion profit brought in during the previous quarter. Revenue is also down compared to last quarter, from 60.56 trillion won to 58 trillion.

Samsung doesn’t release its final quarterly figures, which show how each division performed, until later this month, but the preliminary numbers have already seen shares in the company fall by as much as 2 percent.

It’s no secret that smartphone sales are in a slump. With ever-increasing prices and only incremental upgrades over previous models, fewer people are buying the latest flagships every year. According to Bloomberg, it’s a problem Samsung is experiencing with the Galaxy S9, which is reportedly the lowest-selling Samsung flagship since the S3.

Samsung is also facing problems in other areas. Marketing costs are continuing to rise, and sales of OLED screens to Apple have been weaker than expected. Apple believes its 6.1-inch LCD model will be the best-selling new iPhone, and LG will also be supplying OLEDs for Cupertino, all of which spells bad news for Samsung. However, its chip division continues to be a massive earner, and the Galaxy Note 9 will likely boost sales when it’s unveiled in Brooklyn on August 9.

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Hexic

TS Evangelist
I'm sure it has nothing to do with the ever rising cost of flagships. People dont want to pay $800+ for a phone that is only supported for, at most, 2 years.
To be honest, I switched from my S8+ to my current Pixel 2 and I've never looked back. Samsung has enough junk packed on it that it slows down over time, and then begins to get buggy and crash.

My Pixel 2 is as snappy now as it was when I first received it almost a year ago, the battery life is excellent. Using Project Fi, I pay less than half of my old plans with Verizon and AT&T, and the service is worth it.
 
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MilwaukeeMike

TS Evangelist
I'm sure it has nothing to do with the ever rising cost of flagships. People dont want to pay $800+ for a phone that is only supported for, at most, 2 years.
To be honest, I switched from my S8+ to my current Pixel 2 and I've never looked back. Samsung has enough junk packed on it that it slows down over time, and then begins to get buggy and crash.

My Pixel 2 is as snappy now as it was when I first received it almost a year ago, the battery life is excellent. Using Project Fi, I pay less than half of my old plans with Verizon and AT&T, and the service is worth it.
This is why I just got a Pixel 2 and signed up for Fi. Good luck Samsung and Verizon!
 

OutlawCecil

TS Evangelist
When quality OnePlus phones are half the cost and don't come with bloatware, tell me why anybody would pay double for a bloatware filled phone anymore?
 
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Hexic

TS Evangelist
This is why I just got a Pixel 2 and signed up for Fi. Good luck Samsung and Verizon!
I think the only issue with more people not having a Pixel / Fi plan is that not enough people know about it. The quality and price can't be beat, IMO.
 

toooooot

TS Evangelist
I think 400 500 is an adequate price for a device which could be used for 2 3 years. I like flagships, but to afford those, I use my devices gently to resell later. Here is what I could get out of my last 2 3 year old devices:
120, 130, 270. The last gs7 was a bit younger than 2 years so I could sell it for more. Use screen protectors with cases, people. those 800 devices go for ~600 just few months after release.Needless to say, I avoid the stores, CL and Swappa rule!
 

tipstir

TS Ambassador
Samsung I am not a fan.. I do not like the design of their cell phones anyway. Motorola Moto Z2 Force is a lot better to me.