While the Korean tech giant was hoping 2015 would mark a major recovery from previous year, investors are citing concerns that its flagship phone, the Samsung Galaxy S6, isn’t hitting its sales estimates (via Re/Code). Samsung’s stock price has fallen nearly 6% during the year, with supply shortages for the curved-screen S6 edge and “economic headwinds” in Europe and China lowering expectations, according to Reuters.
HDC Asset Management fund manager Park Jung-hoon said that after Samsung’s first-quarter results, the consensus for second-quarter earnings was somewhere around 7 trillion won ($6.22 billion). “But now I think so long as the first digit doesn’t start with a six it won’t be a shock” he added. Previously, the average forecast from a survey of 39 analysts came at April-June operating profit of 7.2 trillion won, But now, 20 of them have cut their forecasts in the past 30 days by an average of 3.9%.
“Samsung expects the new phones to be their best-selling devices to date. Data from researcher Counterpoint released in June showed that Samsung sold 6 million S6 smartphones from the April 10 launch to the end of the month, outpacing the previous S5 model in the same time frame.
But analysts say Samsung’s failure to anticipate demand for the S6 edge led to a missed opportunity. Though the firm says it now has enough capacity to meet demand for the curved-screen model, its flagship phones will soon need to compete with new Apple Inc iPhones that analysts expect will launch as early as September”.
Samsung is expected to reveal its second-quarter revenue and profit tomorrow, with full results to follow by end of July.