Samsung posted less-than-great results for its Q2 2014 earnings report back in August, an things aren’t looking any better for Q3 either. In the wake of increased competition from Chinese smartphone makers and the announcement of bigger-screened Apple devices, several analysts have adjusted their Q3 forecasts for the Korean giant.
IBK Securities originally forecasted operating profits for July-September to be around 6 trillion won (roughly $5.8 billion), but have now adjusted down to just 5 trillion won. IBK also believes expected sales will fall as low as 49 trillion won. Again, IBK isn’t the only one making changes, as both BS Securities and Samsung Securities both predict sales of 49.8 and 50.5 trillion respectively and operating profits in the 5.7 trillon won range. How does this compare to last year? Q3 2013 saw an operating profit of 10.16 trillon won, basically double what IBK and others are predicting.
Looking at these forecasts, it’s easy to think that Samsung has seen better days, and it has. That said, it’s not all doom and gloom, either. Samsung is still the de facto leader of the Android world. Additionally, the recently announced Note 4 has yet to make its way into the hands of consumers and new devices like the premium Galaxy Alpha family could also win the Korean giant new and/or returning fans in the months and years to come.
It’s true that Samsung has seen an increased level of competition from both old rivals like Apple and newcomers like Xiaomi, but Samsung shouldn’t panic just yet. Slumps happen, the question is whether Sammy can rise above the challenges and come out strong than ever. What do you think, is this the beginning of Samsung’s fall from grace as the king of Android OEMs or just a temporary slump? Additionally, what changes can Samsung make to turn things around?