Reporting Tuesday (Oct. 7) that it’s operating profit plunged as much as 61.8 percent, as it battles Apple in the smartphone market that it once dominated.
The Wall Street Journal opted to not mince words Tuesday, saying that Samsung “has gone from smartphone model to basket case. There could be worse to come.”
The earnings released were “even worse than already low analyst expectations. It was the fourth quarter in a row of declining operating profit. A detailed breakdown won’t be available until Samsung releases full results, but the problem is clearly in the mobile division. Samsung said total smartphone shipments ‘increased marginally’ in the period, but margins declined due to lower selling prices and higher marketing expenses,” the Journal reported.
Samsung has headaches at most extremes in the smartphone market. On the low-end, Chinese handset makers are delivering “intense competitive pressure” on pricing. At the high-end, Apple’s iPhone 6 and 6 Plus “essentially wiped out Samsung’s distinguishing feature: a big screen size,” the Journal noted.