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Although it is widely known among device manufactures that the summertime is one of the slowest concerning sales, Samsung's latest quarter reports definitely shows the struggles its had with keeping their flagship Galaxy S9 and S9 Plus above water. Samsung’s mobile communications vice president, Lee Kyeong-Tae, acknowledged in an earnings call that sales for the Galaxy S9 and S9 Plus had been “weaker than expected,” as his unit reported a 22 percent drop in sales revenue to $20.2 billion.
According to Lee, he went on to explain that people are holding off on upgrading their phones and are opting for keeping old models for longer periods of time in comparison to previous years. In addition, the South Korean smartphone giant has also seen an increase in competition from Chinese smartphone makers such as Huawei and Xiaomi. Just this week Apple, another notable competitor for Samsung, was reportedly also outsold by none other than Huawei and was able to crown itself as the number-two smartphone seller in the world.
Although it was Samsung’s slowest profit growth in more than a year, at 20.9 percent market share and with over 71.5 million sold devices, Samsung remains as the industry leader according to IDC data, a premier global provider of market intelligence. Overall, the company reported a $13.3 billion profit, which gained 6-percent in comparison to the same time last year.
Research manager for IDC, Anthony Scarsella, said in a recent interview that, “Looking forward, more affordable premium devices might be the solution the market needs in the second half of the year to drive shipments back in a positive direction.” Anthony is responsible for researching, synthesizing and analyzing information for the U.S. mobile device market at IDC.
Based on more recent statements from other executives at Samsung, it appears that the company is really listening to the market researchers and plan to offer consumers a bigger bang for their buck. Robert Yi, executive vice president for investor relations, said it was part of a strategy to “address rising competition.” The company promised that the Note 9, a new addition to Samsung’s large-screened phone line, “offers exceptional performance for a reasonable price,” and would come back with something more exciting for the next generation of smartphones.
“We expect 5G and new form factors to bring new energy to the market. We will be preparing easily to tap this breakthrough technology,” Lee told analysts during the earnings call.
Many industry critics suspect that Lee’s “form factors” comment could be alluding to Samsung’s continued development of flexible screens, which were first teased at the CES tech-show in 2013. Rumors of a foldable smartphone from Samsung have been floating around for years. With the 10th edition release of the Galaxy S series just around the corner, many Samsung-followers are hoping to see the company’s first attempt at a foldable phone to make an appearance soon.
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