Samsung's Uncertain Q4 Profits

MaddiRuhl on Friday January 8, 2016 at 10:02:51 AM

Samsung's Uncertain Q4 Profits

Despite a fourth-quarter profit boost compared to last year, Samsung's Q4 profits may fall short of expectations.

It's no secret that Samsung has been grappling with maintaining revenue increases in a sluggish premium smartphone market for several years now. A boost in sales this fall showed some encouragement for the tech giant, however the company expected more from the holidays in terms of smartphone sales. With fourth-quarter results to be made public later this month, analysts are expecting Samsung's profits to fall short of expectations. Rising competition from both the premium and low-end spectrums of the smartphone industry is also putting pressure on Samsung's bottom line. Even so, it is still likely that profits will be up from last year's Q4, which is still good news for Samsung.

One tactic Samsung is employing to rescue lost profits is to shift its focus towards other products with currently hotter markets, like its VR headset, or its Internet of Things home devices and appliances. There has been no clearer demonstration of this than at this week's Consumer Electronics Show, where the company brought out some hard-hitting home gadgets like a smart fridge, a soundbar, and all-new IoT-ready smart TVs. All of these new gadgets Samsung is churning out may well prove to turn things around for the company in 2016, but there is certainly light on the horizon for the company's smartphone division, too. Next month's Mobile World Congress is expected to see the unveiling of Samsung's highly-anticipated newest flagship smartphone: the Galaxy S7.

Photo: © iStock.


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