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Samsung Electronics is expected to post its weaker earnings growth in more than a year in the second quarter, with poor sales of its high-end Galaxy smartphones overshadowing its highly profitable chip business.
Analysts expect Samsung smartphone sales to fall After losing more than two percent in the previous quarter, consumers are turning to cheaper models of Chinese rivals such as Xiaomi.
The advance of Samsung on Apple in the global smartphone market is under pressure after the US iPhone X has exceeded market expectations while the lack of technological innovation offers Samsung Samsung offers .
"Functions (as) Samsung's mobile phones are not attractive enough to spend more money," said Song Myung-sup, an badyst at HI Investment &
Samsung's latest flagship phone, the Galaxy S9, launched in mid-March, offers many software, but little sense of technology.
Analysts say sales should be lower than previous Galaxy S8 series sold in 2017.
Earnings growth should slow when Korean conglomerate reports its second-quarter results on Friday. 19659002] Analysts expect operating profit of 14.9 trillion won ($ 13.3 billion) for the quarter, up 5.7% from the previous year, but lower the record of 15.6 trillion won in the March quarter.
Samsung, whose shares are down nine per cent since the beginning of the year, is also expected to release forecasts for the April-June quarter, Friday, giving estimates for the number of shares. Business and operating profit.
Chinese Challenges
Samsung bets on traditional distribution to sell phones, while competitors have progressed Counterpoint badyst, Shobhit Srivastava, said:
Some investors are skeptical as to whether Samsung's next range of foldable phones with stylish OLED displays will be innovative enough to gain traction with customers. The new Galaxy Note will debut August 9 in New York
"Samsung has to show something that will change the paradigm," said Park Jung-hoon, a fund manager at HDC Asset Management who owns Samsung Electronics shares . [Lire la suite] Apple and Samsung settle a seven-year patent battle
"Market watchers do not have high expectations for the smartphone market right now, while Chinese gamers have already discovered the technology and ideas.] In China, the world's largest smartphone market, Samsung's market share was only 1.3% in the first quarter, according to data from the company Strategy Analytics, against 22.5% for Huawei
Huawei, Oppo, Vivo and Xiaomi – ranked first in China, while Apple was the only foreign company in the top five.
In India, Xiaomi supplanted Samsung as the market leader last year and continued to dominate the world's second largest smartphone market in the first quarter, according to a report from the Counterpoint research firm
Samsung Remains World's Largest Smartphone Manufacturer with 80 Million Gadgets Its difficulties in the mobile segment are overshadowing the success of its chip industry, which generates about three-quarters of the company's profitability. Samsung's operation and about a third of its revenue.
According to badysts, chip operating profits are expected to increase 50 percent to a record 12.5 trillion won in the second quarter compared to badysts because servers, gaming PCs and cryptocurrency devices require increased firepower.
(Report by Ju-min Park and Heekyong Yang, Writing by Sayantani Ghosh, Edited by Stephen Coates)
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