Analysts predict that Samsung's operating profit fell in the second quarter

According to several analysts quoted by Reuters, Samsung's profits for the second quarter are expected to fall compared to the first quarter of 2018 due to relatively weak smartphone sales, although the success of Samsung's chipset sales is expected to soften some losses. While sources expect an operating profit of 5.7% over last year, analysts predict that the company will not exceed 15.6 trillion won, or 13.9 billions of dollars in operating profits recorded at the end of the first quarter of the year. As a result, analysts expect that Samsung 's operating profit will fall to 14.9 trillion won, equivalent to $ 13.3 billion.

The Samsung Galaxy S9 series seems to have contributed to the rise in operating profits in the first quarter of 2018 in March, analysts suggest that sales figures for the latest flagship have fallen during the period of time. April to June, which will result in a decrease in overall operating income at the end of the second quarter of 2018 compared to the last quarter. Some analysts attribute this to the relative success of the iPhone X, which may have attracted more customers with its unique hardware, arguing that even though Samsung devices offer a rich software experience, they do not necessarily push the boundaries of the material design. This could have made buyers more reluctant to pay a higher price for a flagship Samsung, the Samsung Galaxy S9 having been launched for around $ 720, and its big brother – the Galaxy S9 Plus – being tied to a launch price of 39, about $ 840.

In addition, analysts believe that Samsung is now facing stronger opposition from Chinese smartphone brands that not only tend to offer handsets at lower prices, but also manage their business via online channels. According to data shared by the research firm Strategy Analytics, Samsung only held a 1.3% market share in the first quarter of 2018, while OEM manufacturers including Huawei, OPPO, Vivo and Xiaomi , have recorded two-digit numbers. Samsung is expected to release details of its market performance for the second quarter of 2018 by the end of this month, so it remains to be seen whether or not these expected operating earnings figures will remain or not.