Phones

Samsung may not reach its annual smartphone shipments target

Despite the fierce competition, Samsung is still the largest smartphone vendor in the world by a substantial margin. Though the company was able to retain the top spot, growth has mostly stagnated, particularly in the developing markets of Asia. The slowdown seems to be affecting the ambitious goals Samsung has set for itself.

According to a report in The Investor, Samsung is unlikely to reach its annual smartphone shipments target this year. The company reportedly set a target of 350 million smartphone shipments this year, but now believes that it may fall short of the mark. The failure is attributed to the increasing market saturation, less than expected Galaxy S9 sales, disastrous performance in China, and growing competition.

Samsung’s original target was 320 million shipments

Interestingly, the report states Samsung’s original target for 2018 was 320 million shipments, but the company apparently revised the target after the Galaxy S9’s strong preorder numbers in the first quarter. Also, the 350 million shipments target set by Samsung is higher than what it achieved in the previous years. According to the data from Strategy Analytics, the company shipped 319.7 million, 309.4 million, and 319.8 million units in 2015, 2016, and 2017 respectively.

Samsung shipped around 78 million smartphones in the first quarter of this year. In the second quarter, the shipments are expected to be around 73 million units according to the analysts quoted in the report. Underwhelming sales of the Galaxy S9 series is considered as one of the reasons for the downturn.

It appears Samsung might have miscalculated the demand for the Galaxy S9 and S9+ based on initial reception from customers. Contrary to the earlier optimism, analysts are now projecting the annual sales of the Galaxy S9/S9+ to be around 30 million. If that turns out to be true, it will place the latest Galaxy flagships at the bottom of the Galaxy S series sales charts since 2012.

All of this is bound to impact Samsung’s bottom line. Investment firms are forecasting Samsung will post an operating profit of 2.3 trillion won in the second quarter, down 43.3 percent from Q2 last year.

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Biransahin
Biransahin

No company has reached its target except for a couple of cheap phone makers in China and India. Saturation levels are being reached so flat sales should be accepted until other parts of the world enter the income bracket to be able to afford premium flagships. People who normally change devices every year or two aren’t increasing sales over the target, new buyers are necessary for that.

Sleepypandauk
Sleepypandauk

Samsung cant afford to become the Apple of. Android. They can’t rely On incremental updates and premium prices like apple bwcasue apple has always marketed themselves as. A premium company with inflated prices and no ios competitors.

The android market is fericly competitive with countless options and prices. Samsung needs to think long term.

_alex_
_alex_

well some users already sayed well, even S10 will showoff something terrific, Samsung MUST revise his price policy, there are competitors cheaper and better in all, so no more reasons to buy Sammy. On top of that they add childish sw features(AR emoji) and childs/youngs has no 899 euros for a less specs phone! Remember S8 costs 749 when out

warlockba
warlockba

Note 4 cost 700e when it came out, and feature and versatility wise, was beating the crap out of any phone from Samsung to this day (processor not comparing, because that is a new iteration anyhow, and SoC prices from year to year do not varry by much). Yes yes, “but it was not so pretty …”
I’d buy a remake of Note 4 with today’s specs without a blink, if I would intend to return to Android – which I doubt I ever will; (un)fortunatelly Samsung has made sure of that 🙂

martindale
martindale

Agree. I’m still using my Note 4 precisely because the later versions are too expensive and actually won’t do what the Note 4 can do. I use the IR blaster – it’s a godsend when there is no remote for the projector at work. I use the s-pen, so I don’t want a warped screen. I’m onto my third battery – they wear out. And whilst I’m careful with my device, a glass body is just stupid. Samsung has turned the Note series into an S with a pen and stupid price. I’m hoping my Note 4 lasts until they… Read more »

SAMgalaxyXXX
SAMgalaxyXXX

Same here. I would gladly sell my Note 8 and buy a refurbished version of Note 4 with today’s specs, headphone jack at the bottom and IP67.

RoadRunner99
RoadRunner99

Buying the S7 over the S8/S9 was a no brainer for me: no ridiculous curved display, no silly looking round corners, hardware buttons, fingerprint scanner where it should be, proper 16:9 ratio, and at a third of the price of the S9,. Best phone ever.

The S9 is a laughable design (sorry, I know that marketing guys have brainwashed you into thinking otherwise by selling you a distorted display as a feature but truth hurts) and its price is even more ridiculous.

Horus Osiris
Horus Osiris

Lol a distorted display, bro check your eyes at the dotor ASAP

davebwi
davebwi

Not Suprising in the USA, I stopped a purchase of 7 more for my company Due to Lack of support for their Sm-G960U1..100 days Still not any updates!!!!!

Bobbingalong
Bobbingalong

Not really surprising given the s9 being a dud and not really an improvement over the s8. Especially with a single lens and 4gb ram.

Plus the competition has really stepped up the year. The p20 pro & op6 are real viable options at a much cheaper price. They include better specs and generally is faster than the s9s

Horus Osiris
Horus Osiris

Generally they are slower than S9, but they are cheaper and that’s the difference