Industry watchers are forecasting that the July to September earnings of Samsung Electronics due on October 17 to show very weak third quarter. With the last quarter starting, the recovery of Samsung has been quite slow and for the first time in three years now, the company is likely to hit the bottom.
Investors and analysts are one in saying that the days of huge earnings from smartphones are finally over for Samsung because of Apple’s efforts to dominate the market and the entering of many other competitors with cheap, feature-rich devices like Lenovo Group Ltd, Xiaomi Inc. and so on.
Well, it’s not only Samsung which is forecasted to be on the slide to irrelevance as Nokia seems to go in the same direction too after the Finnish company had its phone business bought by Microsoft way back in April of 2014.
For quite some time, Samsung has taken all the profits from Android with its competitors not doing a great job using the operating system, but right now, the battle in the smartphone market is no longer between Apple and Samsung. It’s now the battle of Apple vs Android, which is the operating system offered by Google powering most smartphones in the market today-Samsung’s devices being some of them.
On a forecast by Samsung President D.J. Lee last week, he said that the recovery of the company from its weak profits is only temporary. He is confident about this because of how well the new Galaxy Note 4 flagship of Samsung was received by the critics and he said that there are even way more pre-orders for the device compared to its predecessor.
At the same time, it’s predicted that with the new iPhone 6 introduced in the market, the sales of the Samsung Galaxy Note 4 will likely be hurt, but let’s just find out what the company has to show on its July to September earnings record which will be coming out in a few days.