Samsung’s Q2 earnings forecast proves to be true, sees 1.9% drop in handset sales

by: Gary SimsAugust 18, 2014

samsung-komt-met-12-inch-tablet-in-oktober-samsung-logo-3 Last month Samsung released a Q2 earnings warning in which it said that it was experiencing a slowdown in overall smartphone market growth, mainly due to increased competition in the Chinese and some European markets. According to new numbers released today, that forecast has proven to be completely accurate.

Despite gains in its TV, memory and displays businesses, Samsung saw a decline in handsets sales and a reduction in its global market share during the first half of 2014. Samsung’s bi-annual business report has revealed that the world’s largest smartphone maker saw its global presence in the handset industry drop to 24.9 percent for the first six months of the year. That is a 1.9 percent drop from a year earlier. Overall the company is thought to have shipped some 223.69 million units during Q1 and Q2.

Analysts are citing the slowdown in handset sales as the main reason for Samsung’s reduced Q2 profits which dropped by a massive 19.5 percent to 6.25 trillion won (US$6.11 billion) from a year earlier. The company is expecting better sales during Q3, once the Galaxy Note 4 has been released.

Samsung did better in its TV business where it saw a 2.4 percent increase in market share, compared to last year. The increase, which is mainly due to the demand in Ultra HD TVs, means that Samsung now has a 24 percent share of the global TV market. During the first half of the year Samsung  sold 26.5 million TVs which means it should sell over 50 million units by the end of the year. For 2013 the company sold some 47.5 million TVs.

Samsung’s memory and display panels businesses also faired better than its smartphone business. The company’s global DRAM market share is now 38.9 percent, up 2.7 percent from 36.2 percent in 2013. Its display panels market share came to 21.6 percent in the first half of the year, up 1.2 percent. In the business report Samsung said its plans for long-term growth include a continued focus on high-end displays, including flexible ones.

What do you think? Why is Samsung’s market share decreasing?

  • Zizou

    it’s not too late SAMSUNG . it’s never too late .

  • Mike Bastable

    Poor design choices and a distinct lack of vision: others seem too have a vision of where handsets should go in the next year’s…be that pricing or functionality…Samsung seems to be treating water or following others, let’s face it their newest handset is basically just an android iPhone. So a clear out is needed, new blood with new ideas.
    Also I think maybe a change in their marketing would help, they tend to carpet bomb advertise but lately they are failing to actually advertise the products features or advantages.
    But the new Note will help them short term,long term they will stay in decline.

  • Lilith_Black

    Samsung 1. Design that clearly lacks effort (I know perfectly well that S5 is waterproof, there’s really no need for a waterproof plaster design at the back to remind me of this feature: Alpha proved that the design can work)
    2. Overloaded UI & bloat (Streamline Touchwiz such that the top of the line specs can handle usage w/o overheating, lagging and using the battery within an hour I can’t be putting my phone in ultra power saving mode forever.)
    3. Removing the ability to root and restore for warranty afterwards ( I root my phone to solve prob 2. and use apps like TitaniumBackup. I seriously rubbed off my lingering anticipation for Note 4)

  • The-Sailor-Man

    So let’s say it clear.
    When the Samsung market share increase- that’s because of the marketing.
    When some Q market share go a bit down (due to the low-end-phones sale) – its because of “no premium aluminium” on the flagship phones.

  • Abdullah Abdulaziz

    Make your touch wiZ better or you will sell less then Nokia

    • The-Sailor-Man

      TWiz is the best thing that happened to Android. And even the Android market share so big mostly because of it.

      • Abdullah Abdulaziz

        Well all the people including me switched from Samsung is because of its chunky touchwiz it takes lot of space eat away the battery and make the phone lag

        • The-Sailor-Man

          Who are you “all the people” ??? LOL
          Making general conclusion based on few brainwashed persons, is nonsense! Many millions more came to Samsung because of the great features.
          And with this “lag”BS you make fool of yourself. The features of TW(many of them great) are not meant to be all on , all of the time. But features you don’t need MUST be disabled , ignorant.

          • Abdullah Abdulaziz

            Well I saw it that everyone who leaves Samsung is because of its chunky touchwiz I’m telling it based on my and lot of peoples experience I’m not saying not to use it I’m saying it could be better but for most of the people it’s laggy memory consuming and battery draining
            I know you feel bad because you have invested money in it and you don’t want anyone to speak bad about it but still let’s face it people switch from Samsung because of that

        • Name

          The sailor man has a point

  • people are gonna be mad

    Companies handset sales fluctuate every year, 1.9% is nothing. Stop making a big deal about it. It just encourages apple fanboys and antisamsung fanboys. Let’s face the facts, without samsung , touchwiz, and Knox, android would be sh*t. Samsung is the only company trusted to bring apple and blackberry customers because of how easy touchwiz is to use, meanwhile Knox is a trusted secure environment for business and Samsung decides to let google base their “android for work” off of it. Any other company would tell google to f*ck off. At the end of the day android is like a city, google is the mayor/govt, Samsung is the the rich guy that’s worked very hard to get were they are at now and they donate back to the community and pay high taxes, while all other manufacturers are the freeloaders just along for the ride

  • Guest

    Let’s see…. poor design and bloated touchwiz. If Sammy improves a lot on both then they can expect their earnings to increase.

  • xoj_21

    1.9% thats too low..