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Samsung Electronics’ Chief Financial Officer Lee Sang-hoon shared his doubts today regarding the company’s Q2 results, confirming what many analysts have been predicting. “It is likely to not be good,” said Lee, without adding further details.
The company’s IT and mobile devision — ie the one we care about here — will be the biggest culprit in the profit loss, with analysts predicting more than a 6% fall from 6.43 trillion won ($6.3 billion) to less than 6 trillion ($5.88 billion). That would likely be due to the slowing growth in the smartphone market and the cannibalisation of sales by Chinese OEMs.
On the positive side, Samsung Electronics’ chips division should be seeing another good quarter — after all, this is the division that sells chips to Apple, Meizu, and various other manufacturers — which would offset the company’s total profit loss a little.
What does this mean for you as a consumer? Practically, nothing. Samsung is selling enough devices and making enough profit that its position and notoriety isn’t under imminent threat. However, for the company’s investors, such a loss, especially for three quarters in a row, means that things should change in order to reverse the trend. It will be interesting to see what steps are taken in the next quarters to remedy the situation.
[Via Yonhap]
