Samsung yesterday announced its total profit for the second quarter of 2013 at 9.5 trillion won (£5.4bn): slightly less than the 10 trillion won (5.84bn) that was expected.
This has led to speculation that Samsung’s latest devices, including the Samsung Galaxy S4 flagship, are selling slower than initially predicted.
Jeff Kim from Hyundai Securities told AFP that Samsung’s profits are "weaker than expected,” stating that “slow mobile sales, combined with hefty marketing costs for the flagship Galaxy S4 smartphones” are to blame for the disappointing results.
The figures do, however, show an improvement from Q1’s 8.78 trillion won, mainly due to the release of Samsung’s Galaxy S4 range, which includes the S4, the S4 Zoom and the S4 Mini, as well as the Galaxy Mega 6.3 and 5.9.
Samsung might not be alone in the downturn of the economy, however, as Canadian company BlackBerry last week announced its first quarter loss following the release of its BlackBerry Z10 flagship model. Critics have also voiced concerns over Apple’s ability to hold onto high sales with the upcoming iPhone 5S, with enthusiasm for the iPhone reportedly dwindling.
Samsung is still likely to emerge as the most successful smartphone manufacturer of 2013, though, so these somewhat disappointing profits should not be interpreted as a sign that the South Korean company is about to go under.
Written by Charlotte Kertrestel