A few years ago tech and market analysts expected Samsung to put the squeeze on Apple’s profit share as the company rolled out new products to compete with the Cupertino Mac maker. A funny thing happened on the way to the future– reality. Philip Elmer-DeWitt on Samsung’s latest troubles.
On Tuesday Korea’s largest manufacturer forecast operating profits of 6.9 trillion won ($6.1 billion), down 4% from the same quarter last year and well below the 7.23 trillion analysts were expecting.
Sales declined 8% to 48 trillion won, short of a 52.8 trillion won forecast.
It was Samsung’s seventh consecutive decline. And although the company didn’t break down the results by division, analysts were quick to put the blame on Samsung’s flagship smartphone series, the Galaxy S6.
Competing with Apple on Apple’s turf is a difficult proposition. Samsung has been squeezed by Apple on the premium end, and squeezed by cheaper Chinese manufacturers on the low end. Of course, it doesn’t help Samsung when the public realizes what an ass hat the company’s executives really are (cheating on benchmarks, calling Apple’s iPhone customers stupid, etc.).