Samsung’s share price had dipped to its lowest in two years, and although the continued rumor cycle and subsequent release of Apple’s iPhone 6 was one of a number of factors outlined in a new report, there’s no question that its Californian rival’s decision to roll out two larger-displaying handsets has hurt the Tizen maker.
As noted by Bloomberg, analysts have been lowering Samsung’s profit estimations for a while, and although the Korean outfit has been as dogged as ever in continuing to release new products over the past few months, this hasn’t stopped it from shedding 2.3 percent on the market.
With Samsung’s market value having dropped by some $30 billion, the company has certainly had a trying past couple of months, and Samsung Securities Co. reduced its original profit estimate of 5.7 trillion won down to 4.7 trillion won.
Intriguingly, Samsung Securities didn’t just mention the iPhone 6 pre-ordering habits in its report, but also the sales of China-based brands that have emerged as strong candidates in recent years.
Its [Samsung] smartphones have lost appeal – as evidenced by the solid performances of high-end Chinese models and unexpectedly strong iPhone 6 pre-orders
Even though we’re very much accustomed to seeing Samsung launch umpteen smartphones every single year, there has been a special emphasis on new produce in the months leading to the iPhone 6. The Galaxy S5 launched to much acclaim back in April, with many lauding its display and camera, but the hype soon died down to make way for Apple’s upcoming iPhone 6. In what appeared to be a direct attempt to counteract Apple’s major release, Samsung showcased the Galaxy Alpha, Galaxy Note 4 and Galaxy Note Edge in quick succession, but despite these big announcements, 10 million consumers still went out and purchased the iPhone 6 / 6 Plus on launch weekend.
Samsung is still far and away the strongest vendor of higher-end Android handsets on the market, and the Galaxy S series is still to be considered as the darling of Google’s mobile platform. With that said, the bottom line is looking a tad shaky having dropped to a two-year low, and with Apple now posing a real threat to its phablet dominance, it’ll be interesting to see if a change in strategy is nigh as Samsung looks to counter the new iPhone line-up.
Thoughts?
(Source: Bloomberg)
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