After warning earlier this month that Q2 didn’t “look too good,” Samsung today released its earnings preview for the second quarter of 2014. The South Korean company reported an operating profit of $7.1 billion (7.2 trillion won), missing analyst estimates of $8 billion (8.1 trillion won). This comes out to a 24 percent drop year over year (via Bloomberg).

The mobile/telecommunications unit of Samsung anticipates an operating profit of 5.1 trillion won on sales of 31 trillion won. Samsung says that it hopes to improve its earnings this quarter with a limited impact from a stronger won. For Q2, Samsung blamed its weak performance on the Korean won’s appreciation against the U.S. dollar and the euro.

In terms of smartphone shipments, Samsung shipped 78 million units in Q2, as opposed to the 87.5 million units it shipped in Q1. Many analysts believe that the slide in shipments is due in large part to Samsung’s in ability to “differentiate” its products from Chinese rivals like Xiaomi and Lenovo. This, of course, is in addition to Apple stealing higher-end customers, as well. For Q2, Samsung also said that sales of its medium and low-end smartphones were weak due to increasing competition.

Samsung does, however, note that its Galaxy S5 flagship is selling faster than any smartphone it has ever released, absorbing sales of 10 million units within the first 25 days. Apple is set to report its Q3 earnings on July 22nd.

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28 Responses to “Samsung misses analyst estimates, reports $7.1 billion in operating profit for Q2”

  1. Cun Con says:

    This is the result of dumping the junk android phones at low cost to make “shipping” number. sorry Samsung, your phones don’t end up in users’ hands but in the warehouse shelves.

    • herb02135go says:

      Sorry to shatter your Apple shilling, Cun Con.

      Read the article again. It notes the incredible Galaxy s5 is setting records.
      The dollar-won-Euro is not affected by shipping.

      I’m writing this on my Samsung phone while I listen to YouTube (multitasking is great- maybe your Apple device will have it some day).


      • Lucian Mjob says:

        iOS devices have been able to do that trick for years now. Granted the Galaxy devices have the multiscreen feature that’s pretty cool, but listening to Youtube in the background is an old trick for iOS.

        Anyway, I am impressed by S5 sales. Samsung will be just fine IMHO.

      • iPhones can multitask, moron. I can do the same thing. I can also use the Fleksy keyboard on my non jailbroken iPhone 5C as well. Just adding in case that was your next response to things the iPhone can’t do.

      • Well, my Nexus 5 can’t play a Youtube video when youtube isn’t open. Looks like Google can’t handle multitaskling rigth either?

      • Herb, I’ve seen your posts here before, and it see you haven’t changed. You’re still a god damned Scamsung troll, and I would put money on you being one of their paid shills. STFU with your FUD and propaganda and GTFO.

      • shm1ck83 says:

        Your are listening to YouTube?

        You do realise they do videos!


      • scumbolt2014 says:

        “The next thing that dosen’t look too goid.” – ScamScum

        Impressive. You must be listening to the video because your phone freezes when u play video.

      • borntofeel says:

        You “listen” YT?
        Does that means you use half of the screen for something you just listen to?
        I can listen to YT while browsing too, only it stays in the background like it should.

      • standardpull says:

        I do like to swim with my Samsung. Don’t try that with an iphone! You’ll be sad if you did that with your iphone.

      • danbridgland says:

        Herb, You are clearly unsatisfied by your Samesung device, else why else would you be reading an Apple news site. You are the only failure here.

      • Rania Amine says:

        You call people here Apple shills, and you use the term “the incredible Galaxy S5″ as if you’re a fucking talking S5 advertisement? In all my time on Apple blogs, I’ve never seen ANYONE use the term “the incredible iPhone” because it’s such ridiculous marketing speak and shilling at its worst. You’re pathetic.

        BTW, I have a Nexus 5 and an iPhone 5. The iPhone is fine playing youtube audio in the background while I do something else. Strangely, the nexus 5 cant do that, and the audio cuts as soon as I switch apps. You’re full of shit, as usual. Whatever Samsung is paying you, they’re not getting their money’s worth. How pathetic do you have to be to spend your time on Apple blogs, a company you supposedly hate, in order to do nothing but spread ignorance and lies?

    • herb02135go says:

      Wow, I really touched a nerve. Truth hurts, doesn’t it.

      Yea, I often listen to YT while my eyes are elsewhere. But the screen on the S5 is large enough that even multitasking it’s about the size as it would be on the iPhone.

      Interesting how whenever I point out Samsung’s features vs iPhone, there are a huge number of comments. Probably from paid apple trolls. More comments = more page views.

      My only payment from any manufacturer is in the form of a quality product.

      If you have used only Apple then you should, to quote others, “STFU.”

      • Herb, I searched for your id on Android’s parent, Google, and you haven’t made a single post that wasn’t both a criticism of Apple and a complement to Samsung. You’re clearly a Samsung PR hire. Regardless, Samsung really needs you. I just read on CNN Money, “The South Korean electronics giant issued a second quarter earnings warning Tuesday, claiming that its profit could fall as much as 26% from the year earlier. You don’t have to be a financial expert to recognize that’s alarming.” Apple is riding a 52 week high and is nearing an all-time high.

  2. ron837192 says:

    Either results beat lowered expectations in some way, or analysts are happy with the outlook … the stock is up 1.6% after the news.

    • Funny how that works doesn’t it? Samsung results tank, and their stocks rise. Apple reports record results, and their stocks tank.

    • standardpull says:

      Analysts already learned this. Their stock price took a 10% hit over the past few weeks. Ouch.

    • It basically means that the bad news was already built into the stock price. So investors would tell you that they anticipated a worse report. Regardless, high frequency trading and day traders make for a hectic ride. The only way to really measure the impact is to look at the price over a few more days or even a couple of weeks.

  3. tincan2012 says:

    And now there will be a flood of Samsung astroturfers paid to flood every media and Apple site with explanations on what this really means, along with nonsense anti-Apple drivel. In 5…4…3…2…1…..

  4. mpias3785 says:

    Xaiomi was supposed to come out with good quality, low cost Android phones and cannibalize Apple sales, yet instead wound up taking a bite out of Samsung. Imagine, one Android maker taking sales from another Android maker while Apple is unaffected.

    Who’d a thunk it?

  5. rettun1 says:

    But, boy, are their screens big!

  6. b9bot says:

    Negative advertising will always be negative to sales. Lying about your products will also not get you sales. Stealing from other companies like Apple will also get you no sales.
    And now Samscum is starting to feel the pain.
    It’s only the beginning so get used to it Samscum.

  7. usmansaghir says:

    Samsung tried too hard to beat Apple, along the way forgot about the others.(HTC)

  8. spiralynth says:

    >> Read the article again. It notes the incredible Galaxy s5 is setting records.

    Apple already CRUSHED this so called record last year and will OBLITERATE it this year. According to the piece, Scumbag sold 10M S5 units in 25 days. Ooooh “record sales”. Well, in 2013, Apple sold 9M iPhones during the opening weekend!

    What a clown your are.

  9. What really amazes me, not so much that Scamdung missed their estimates, as the writing was on the wall. Skimming several pro-Apple websites, they have been FLOODED by newly-made user accounts, who are spewing amazing amounts of toxic pro-Scamdung waste comments everywhere they can, and some even viciously verbally attacking anyone who voices any comment that is remotely pro-Apple.

    The mods of all the Apple related sites (including this one) need to grow a pair and get the ban hammers out. Scamdung has been proven to buy bloggers to go around doing this in Taiwan against HTC, now they’re doing it in North America against Apple…

    What a bunch of pathetic losers.