Samsung Electronics’ CEO: Samsung In For A Tough 2016

January 4, 2016 - Written By Kristijan Lucic

Samsung is currently the world’s largest smartphone manufacturer. This Korea-based company has been at the very top of the smartphone business for quite a long time now, battling it out with Apple. Samsung has introduced four flagship devices this year, and along with these handsets the company has also introduced their new design and what not. Each of those devices is made out of metal, and it doesn’t offer a removable battery nor expandable storage, unlike Samsung’s previous flagships which were made out of plastic and did check both the removable battery and expandable storage categories.

That being said, Samsung is getting ready to release their new flagship, the Galaxy S7 in the coming months, and it is also worth mentioning that Samsung MObile’s chief has stepped down a while back, which means we’ll probably see some changes in the company. Dongjin Koh, Samsung’s new chief, said that the company will focus more on software and services in general, which is, of course, good news. Now, it seems like Samsung is expecting 2016 to be a tough year for them, not only for Samsung Mobile, but for the company in general (Samsung Electronics). Samsung Electronics’ Chief, Kwon Oh-hyun, basically said that 2016 will be a tough year to do business. He said that the competition in the business is fierce, both in mobile SoCs and smartphones (he took those as examples).

That being said, Korea Investment, a Korea-based brokerage house, expects Samsung’s Q4 earning to be lower than expected. Samsung will make their official Q4 predictions this Friday, and it seems like this will be a week quarter as far as components sales go. Korea Investments say that Samsung will earn $5.41 billion in operating profit in Q4, while the expected operating profit is $5.78 billion. Samsung’s 2015 flagships did sell rather well, and consumers had mostly positive reactions to them, but the competition had plenty to offer as well. Manufacturers like Huawei, and other China-based OEMs which offered not only premium devices, but also a number of lower-end offerings, managed to ruin Samsung’s plans it seems. Now, it remains to be seen what will happen next. Samsung is expected to work on their software this year, and it remains to be seen if that will help their sales, or will the competition manage to take a chunk of Samsung’s market share and profit.