Samsung has had quite a boisterous run over past few years, and now it’s time to go downhill. The world’s largest phone maker is expecting the profits to fall by as much as 60 percent compared to same period last year. All though a decline wasn’t unexpected, but 60 percent fall is quite steep.
The decline can be attributed to increasing competition which has lead to decline in sales and also decline in prices along with increased marketing cost. Samsung expects to earn 4.1 Trillion Korean won (about $3.8 billion) from approximately 47 trillion won (20 percent decline) in sales.
The operating profit and revenue has also declined compared to last quarter. Full announcement of quarterly earnings will happen sometime later this month. In spite of the reduced profits, the Korean Android giant is still in a very strong position.
Samsung has been trying to compete very hard to maintain and regain market share snatched by low cost Chinese Android manufacturers. The Android giant has also tried to build its own ecosystem over the years to differentiate itself from numerous other Chinese Android devices, but hasn’t been successful in breaking away from Google’s shadow.