Galaxy S9 from Samsung Electronics Reasons for slow sales

Seoul Gwanghwamun Citizens watch the Galaxy S9 at KT Square. 2018.3.16 / News 1 © News1

What caused the stagnation of "Galaxy S9" sales that caused a deterioration in Samsung Electronics' results in the second quarter of this year?

On the 6th, Samsung Electronics recorded sales of W58trn in the second quarter of this year and sales of 59 billion won in the second quarter of this year, And the operating profit of 14.8 billion won . Sales decreased 4.23% and operating income decreased 5.37% from the first quarter. The IM division (mobile), estimated on the basis of this preliminary performance, achieves sales of 24 to 26 trillion won and an operating profit of 2.5 to 2.4 trillion won in the second quarter of this year. year.

It is expected to fall by 15.6 percent from 450 billion won and 45.6 percent from operating profit by 3.77 billion won. In February of last year, MWC 2018 is held in Barcelona, ​​Spain, saying, "I will exceed the sales volume of the most popular Galaxy S7 (about 47 million units). ). "

Samsung Electronics is the largest player in the global smartphone market, accounting for 22% of the global smartphone market in the first quarter of this year. Europe (33%), Central and South America (37%) and Africa and Middle East (28%). In the United States, where Apple is strong, it ranks second with 38% market share. In Asia, it represents 13%, which is equivalent to the share of Huawei, Xiaomi and Oppo in China. Market share is not expected to change significantly in 2Q11.

So, what caused the decline in revenues of Samsung's IM division? In the industry, the 'Galaxy S9' series is selling poorly. There are two reasons for slow sales. First of all, Samsung Electronics introduced the distinctive features of the Galaxy S9 as 'low light', 'emoji' and 'super slomo', but many consumers thought that it was similar to the Galaxy S8 and found no novelty

We can find reasons for slow sales in the global smartphone market. According to Counterpoint Research, a global market research firm, global smartphone shipments have fallen for a second consecutive quarter to 320 million units. The downward trend is expected to continue in the second quarter.

Indeed, the demand for smart phones has been lengthened in advanced markets such as North America and Europe, and demand has been declining as functions and designs have reached a Mountain peak.

Above all, the clbadics of the Chinese market disturb Samsung Electronics.

The market of Africa and Asia is growing, but it is sold at low and middle prices. According to Strategy Analytics (SA), Samsung's smartphone market share in China is 1.3% in the first quarter of this year. It predicts that it will fall below 1% in the second half of this year. The problem is that it is difficult to expect a rebound in the Chinese market. The Chinese smartphone market has already entered a phase of negative growth and its domestic smartphone manufacturers, such as Huawei and Xiaomi, are also in trouble.

In response, Samsung Electronics said: "In China and China in 2013 and 2013, about 18% of the total sales of the Galaxy S9," The total market share was about 2% l & # 39; last year, compared with 1.3% in the first quarter of this year. "" We have been working regularly since 2014 to compensate for this, but the decline has continued. "" Last March, Kwon Gye's vice president -hyeon took office, launched low-priced, market-ready phones, and integrated efforts to consolidate seven sales bases in China. "It's hard to change immediately,

Galaxy S9 sales stagnated at Second quarter of this year, the outlook for the securities market is also being revised downward. "We expect Samsung smartphone shipments to reach 7.3 million units in Q2," said Nogeun Chang, badyst of Hyundai Investment & Securities, adding that "the deliveries of the Galaxy S9 series are expected to fall by 23%". (19659010)