CFO of Samsung, Lee Sang Hoon, expects the company's second quarter financials to be "not that good". Samsung's projected earnings are $8.4 trillion for Q2 2014. By comparison, Samsung earned 10.2 trillion in Q3 2013.
Reports indicate that the dip in smartphone sales is the primary culprit. An analyst from KTB Investment & Securities had this to say:
“The main reason behind the lowered earnings estimate largely stemmed from weak smartphone sales. Strengthening competitiveness of local players in emerging markets are hurting sales of Samsung’s lower-end smartphones.”
Samsung's smartphone sales shrunk from 87.5 million units to 78 million units. The drop was mostly attributed to improved iPhone sales, along with lower-end, budget phones from Chinese manufacturers nabbing up some of Samsung's market share.
The Korean tech giant plans on beefing up their sales from memory chips and high-end television sets. The actual Q2 numbers should be released next week.
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