14 DAY TRIAL // Samsung’s 2018 performance is far from what analysts projected last year, and it’s happening partially because of the Galaxy S9, which right now is selling well below expectations.
With shares dropping every week, Samsung is now expected to return to growth in the third quarter of the year, with Apple’s new iPhone generation to be the one to thank to.
A report from Korea Herald and citing local analysts reveals that the outlook has so far been positive for the third quarter when Samsung should benefit from improved DRAM demand, the debut of the Galaxy Note 9, and the arrival of Apple’s new iPhones.
Two of the new iPhone models launching this year will come with OLED panels, and Samsung will be the exclusive manufacturer. Last year, Samsung built the display for the iPhone X, and this was considered to be one of the most expensive parts of the device.
“The second quarter earnings will be somewhat disappointing, but the company will likely post a record operating profit of 17 trillion won(US$15.40 billion) in the third quarter thanks to robust sales of chips and displays,” Choi Do-yeon, an analyst from Shinhan Investment, was quoted as saying.
New models coming in early 2019
Lee Seung-woo, an analyst at Eugene Investment & Securities, says phone sales in the second quarter would stay low for Samsung and could drop to just 30 million units.
Apple is projected to unveil the new iPhone models in September this year, and Samsung wants to bring the Galaxy Note 9 to the market in August. The unveiling of the new phablet is due in early August, with sales to begin later the same month.
Samsung is also hoping that an earlier-than-usual unveiling of the next Galaxy S model would also help it tackle declining sales. The Galaxy S10 is now expected in January, as compared to the S9 which launched in February this year, while a more innovative foldable device could see daylight one or two months later.