Samsung has reported slower profit growth in its latest quarterly results.
The South Korean company estimated profits to be at £9.9bn for the April-June quarter, marking an increase of 5.2% from the same period last year, but lower than the £10.5bn from the previous record-breaking quarter.
For Q2, it also predicted that sales were down by 4.9% on the year before, falling to approximately £39.1bn.
Ernest Doku, mobiles expert at uSwitch.com, said a crowded market place threatens the company’s dominance.
“Samsung’s disappointing Q2 performance was to be expected given the increased challenge in their core mobile handset market from Chinese manufacturers, particularly in the price-sensitive EU,” he said.
“It is certainly also possible that part of Samsung’s plight has been triggered by the continuing decline of the high street – we need only look at Carphone Warehouse’s mass closures to see that while there remains huge demand for high-quality handsets, the variety of options in what to choose and where to buy them means that established titans of the market are undergoing difficult spells at the moment.”
The Galaxy S9 smartphone maker is expected to go deeper into its performance results later this month.
Earlier this year analysts at Gartner claimed that smartphone sales had declined globally for the first time ever, citing the fact that owners are keeping their handsets for longer as one of the reasons behind the drop.
