Samsung has released a statement saying that it is expecting its quarterly revenues to decrease yet again as the South Korean phone maker continues to deal with fierce competition in its core mobile phone division.
The company is estimating its operating profit for the three month quarter ending March 31st to be $5.4 billion. That amount would be a 30 percent decrease compared to the same period a year ago, and essentially the same profit as the previous quarter's. Also, Samsung is expecting that its sales revenues for the first quarter of the year has likely decreased by about 12 percent year over year to an amount of $43.2 billion. Still, Samsung's estimates are actually more optimistic compared to the one offered by Bloomberg, which stated that the company's operating profit would be close to $5 billion.
The last few quarters have not been kind to the South Korean tech giant. During the fourth quarter of 2014, Samsung's operating profit declined by 36 percent, which led to the company losing its grip on the global smartphone sales title, which now belongs to its rival Apple.
It goes without saying that Samsung is currently in the process of making a comeback. The company is preparing to launch its two newest flagship devices, the Galaxy S6 and its curvy sibling the Galaxy S6 Edge, to stores everywhere this coming Friday.
Reclaiming its spot as the market leader will not be easy for Samsung. Apple's newest iPhones, the iPhone 6 and the iPhone 6 Plus, are still going strong even as other phone makers like HTC and LG are preparing to launch new flagship devices. And then there's the Apple Watch, which goes on sale on April 24th. Apple's wearable device may not compete directly in the smartphone market, but it will take away some of the attention that other phone makers need when launching their own smartphone offerings.
And lest we forget, Chinese phone makers like Xiaomi and Huawei always pose a threat, especially for Samsung whose market share has already started to erode in key markets. During the final quarter of last year, the company has seen its market share decrease to 19.9 percent from a commanding 29.5 percent.
Much is truly riding on the success of Samsung's newest flagship smartphones. The Galaxy S6 and the Galaxy S6 Edge definitely have top quality specifications to boast, but getting people to actually buy them is an entirely different dynamic, and a much more difficult thing to predict especially when the level of competition is very high.
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