Samsung’s new flagship smartphones might be all-time best sellers for the South Korean manufacturer, but investors are projecting grim times in Q2 2015, lowering expectations.
Investors cite the lack of foresight by Samsung on the popularity of the Galaxy S6 Edge as a big concern, along with continued supply issues. Thomson Reuters claims this is a large missed opportunity, potentially losing millions of sales due to lack of supply.
The previous forecasts in June said Samsung would meet £4 billion in profit by Q2 2015, but are lowering forecasts to under £3.5 billion to compensate for the lack of Galaxy S6 Edge sales.
Samsung should announce big numbers for the Galaxy S6, potentially hitting over 20 million sales. The last update said six million phones had been sold, back in April. Some investors are lowering sales expectations of the Galaxy S6, following news of a lower quarter.
It is not the worst thing to happen to Samsung, considering the poor 2014 year leading to a massive drop in investor confidence. Even though confidence has not been fully restored, considering Apple surpassed Samsung in overall sales in Q1 2015, Samsung is trying to make its company portfolio less messy.
That includes lowering the amount of mobile devices it produces, sticking to a core line of models. The new Galaxy A range appears to facilitate the mid-range devices, while the Galaxy S and Note will continue to be the top-end devices.
Samsung will also have to talk about China and India, two of the biggest markets where it is losing market share. In China, it is down to sixth in the market, behind Apple, Xiaomi, Lenovo, Huawei and ZTE. In India, it is losing market share to Micromax, Xiaomi and Karbonn.
Overall it looks pretty bleak on the mobile front, even if the Galaxy S6 surpasses sales expectations.