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Samsung Electronics is expected to experience a decline in its quarterly revenue growth, according to Reuters according to market badysts. The company is expected to release its financial results for the second quarter of 2018, with the hope that the numbers will be the lowest in the last year due to allegedly bad sales Galaxy S9 and S9 +.
According to badysts, Korea's new top sells less than its predecessors Galaxy S8 and S7, which has severely damaged the financial results of the Korean mobile division. Samsung Mobile is expected to generate revenues of 14.9 trillion won, the equivalent of $ 52 billion or $ 13.3 billion. This figure represents growth of 5.7%, which is apparently a concern for Korean investors.
The Functions That Samsung's Mobile Handsets Are Not Attractive enough to Encourage the Consumer to Spend Money on Them ]
HI Investment & Securities Analyst Song Myung-sup Reuters declared that Samsung's problem with the Galaxy S9 is related to a slight stagnation of the company in the mobile phone business. While competitors presented handsets with exotic design and differentiated features, the company remained very close to what it was offering in the latest generation of its high-end. "The features that Samsung's mobile handsets are not attractive enough to entice consumers to spend money on them," commented Myung-sup.
In fact, Korean was more focused on software than S9 and S9 +. Of course, we had the variable aperture camera, which is an advance to Samsung's exclusive in the mobile market, but it seems that consumers are not so impressed. With all this, since January, shares of Samsung Electronics have accumulated a decline of 9%.
Except that Samsung Electronics is not just composed by the mobile division. The company also encompbades the chip division, which is by far the most profitable business right now. Investors expect this sector to be responsible for three-quarters of the company's operating income in the second quarter of the year, as well as one-third of all revenues.
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