The mighty Samsung might finally be reaching a plateau after the company announced a 60% fall in quarterly operating profit. Sales of their Galaxy handsets has slowed of late and Samsung are expecting an operating income of 2.5 billion for Q3 – much lower than expected.
Samsung are prepping new smartphone designs with “new materials” and a series of new “mid-to-low end smartphones”. A statement from the mobile maker reads as follows.
Smartphone shipments increased marginally amid intense competition. However, the operating margin decline due to increased marketing expenditure and lowered average selling price.
The competition, which includes Motorola, LG, HTC and Huawei to name just a few, are continuing to make very well made phones. Samsung have obviously seen their luxury line of handsets, which earn them the most, hit a saturation point, so are now targeting the entry level market instead.
However, they’re not alone. Many other manufacturers are in the race to the bottom as we speak.