Galaxy S6 Edge Shortages Cloud Samsung’s Q2 Sales, Financial Expectations
Samsung can't seem to a catch a break these days, at least not in mobile. Last year the South Korean electronics maker had to contend with excess Galaxy S5 inventory, leading to a shakeup in upper management. Things looked to change for the better this year when Samsung launched new flagship phones, the Galaxy S6 and Galaxy S6 Edge, but now the company faces a different kind of problem.
It seems Samsung is having a tough time keeping up with demand for its curved screen Galaxy S6 Edge, leading to a product shortage. Combined with tough economies in Europe and China, analysts are lowering the earnings forecast for Samsung.
In a previous survey of 39 analysts conducted by Reuters, the average forecast for Samsung was an operating profit of 7.2 trillion won (around $6.4 billion in U.S. currency). That would have been the same as a year prior and a gain of 6 trillion won over the previous quarter, but in the past 30 days, 20 analysts slashed their forecasts by an average of 3.9 percent.
On the bright side, Samsung is still poised to collect a profit, and it's a good sign that its phones are flying off store shelves. The newest Galaxy devices are Samsung's most popular handsets to date. On top of that, Samsung claims it has the supply issues figured out, which is also good news.
At the same time, Samsung will have to be careful to avoid any further hiccups, especially as Apple gets ready to launch new iPhone models (presumably the iPhone 6S and iPhone 6S Plus) in September or October.
It seems Samsung is having a tough time keeping up with demand for its curved screen Galaxy S6 Edge, leading to a product shortage. Combined with tough economies in Europe and China, analysts are lowering the earnings forecast for Samsung.
In a previous survey of 39 analysts conducted by Reuters, the average forecast for Samsung was an operating profit of 7.2 trillion won (around $6.4 billion in U.S. currency). That would have been the same as a year prior and a gain of 6 trillion won over the previous quarter, but in the past 30 days, 20 analysts slashed their forecasts by an average of 3.9 percent.
On the bright side, Samsung is still poised to collect a profit, and it's a good sign that its phones are flying off store shelves. The newest Galaxy devices are Samsung's most popular handsets to date. On top of that, Samsung claims it has the supply issues figured out, which is also good news.
At the same time, Samsung will have to be careful to avoid any further hiccups, especially as Apple gets ready to launch new iPhone models (presumably the iPhone 6S and iPhone 6S Plus) in September or October.
