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Samsung predicts major slump in profits

(Image credit: Image Credit: JPstock / Shutterstock)

Despite the undeniable success of the Galaxy S10 flagship smartphone series, it seems as Samsung isn’t out of the woods yet and that its profits are still tanking.

According to Engadget, the South Korean tech giant issued a warning that its profits will most likely take another dive in the second quarter of the year.

Allegedly, Samsung is expecting a 56 per cent fall, year-on-year, to approximately $5.6 billion.

Samsung has not given any direct confirmation as to why it is experiencing yet another drop in sales, but the media argue that it could be due to a drop in the sales of its memory chip.

The Galaxy S10 and the A lineup performed great, but even these popular phones could not reverse the downwards trend.

Samsung is looking at a dynamic period ahead. The Galaxy Note 10 is almost here, and so is the Galaxy Fold that has allegedly been fixed after the initial embarrassment. Apple’s design for the upcoming iPhone has been leaked and people are already calling it ugly, which could also play to Samsung’s advantage. Huawei’s woes with the US government are also a mitigating circumstance.

However, at the same time, Australia and France are looking into Samsung’s advertising and labour practices, and upcoming smartphone makers like Oppo, Vivo and Xiaomi are proving worthy adversaries.