A reason why most people think Samsung Electronics’ whole performance level is not meeting expectation is because performance of IT Mobile (Internet Mobile) area fell short of market’s observation value. As effect of Galaxy S6 is not so great, forecast of IM area in second half is still unclear unlike other areas.
Stock industry predicted that business profit of IM area in second quarter will easily surpass 2.65 billion dollars (3 trillion KRW). But as it continuously lowered its expected value for past month, there is even a prediction that business profit will be around 2.47 billion dollars (2.8 trillion KRW). Industry is seeing that sales volume of Galaxy S6 in second quarter will fall short of 18 million instead of its projected value of 20 million. It also reduced its sales volume for the year to 45 million-level.
It is estimated that sales volume of Samsung Electronics’ Smartphones in last first quarter is around 84 million, but it will be around 75 million to 80 million in second quarter. This will work as the main cause for putting burdens on performance level in next quarter.
It is seemed that the reason why effect of Galaxy S6 wasn’t so great is because IPhone 6 was so popular that it took away all demands for other premium phones. Intensification in competition corresponding to growth of Smartphone market can be another reason. Although Samsung Electronics says that it solved problem about Galaxy S6 Edge’s yield value, which is much more popular than Galaxy S6, some people also think that there is a possibility that it went through supply problem.
“Samsung Electronics hoped that Galaxy S6 will be Smartphones that have the most sales volume, analysts say that it lost its chance when it could not predict the demand for Galaxy S6 Edge. Even if it solves its supply problem, it is at a point where it has to compete against new IPhone model.” Reuters reported about why Galaxy S6 could not succeed.
Samsung Electronics releases flagship model consecutively to strengthen its competitiveness in Smartphones. It is planning to show 5.7-inch ‘Galaxy Note 5’ at IFA in September and finish its Zero 2 Project, which develops 5.7-inch Galaxy S6 Edge Plus (tentative), in early August. There is possibility that Note 5 and Edge Plus will both be shown at the same time at IFA.
According to industry, Samsung Electronics is aiming December to finish its development of Galaxy S7 and it can be released earlier than next year’s Mobile World Congress (MWC). Performance of IM in second half will be greatly affected by how premium model that is consecutively released will compete against IPhone’s new model (estimated to be IPhone 6S) and who holds superiority over the other.
■Progress of sales and business profit for IM area (unit: billion dollars (trillion KRW))
▲Sales for IM area in past quarters are 25.1 billion dollars (28.45 trillion KRW (2014 2Q)), 21.7 billion dollars (24.58 trillion KRW (2014 3Q)), 23.2 billion dollars (26.29 trillion KRW (2014 4Q)), 22.8 billion dollars (25.89 trillion KRW (2015 1Q)), and 22.9~23.8 billion dollars (26.00~27.00 trillion KRW (2015 2Q)).
■Progress of sales and business profit for Samsung Electronics (unit: billion dollars (trillion KRW))
▲Sales for Samsung Electronics in past quarters are 47.3 billion dollars (53.68 trillion KRW (2014 1Q)), 46.1 billion dollars (52.35 trillion KRW (2014 2Q), 41.8 billion dollars (47.45 trillion KRW (2014 3Q)), 46.5 billion dollars (52.73 trillion KRW (2014 4Q), 41.5 billion dollars (47.12 trillion KRW (2015 1Q)), and 42.3 billion dollars (48.00 trillion KRW (2015 2Q)).
Reference: Samsung Electronics and Estimation by industry
Staff Reporter An, Hochun | hcan@etnews.com