Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Do Samsung Numbers Presage Bonanza Doom?
The PC was a 35 year golden bonanza for Wintel, but the mobile phone business has spread its largesse more spasmodically – first Motorola, then Nokia, then Blackberry, then Apple, then Samsung. Could the bonanza be over?
Samsung, the world’s largest manufacturer of mobile phones, blames a slow-down in the smartphone market for a 25% downward revision in the current quarter’s profit forecast from $8.33 billion to $7.1 billion. It will be the third quarter in a row that profits have fallen.
As well as a phone market slow-down, Samsung also blames increased competition in the China market for the reduction as well as the strengthening Won which has increased 11% against the dollar in the last 12 months.
Apple’s reportedly imminent launch of the iPhone 6 probably didn’t help matters either.
Apple, with its famously thick margins, may prove itself immune from the market blight but, if it doesn’t, with the China suppliers cutting high-end smartphone prices to the bone, this boom may soon be over.
Tags: Apple, mobile phone, samsung