Samsung predicts a 30% drop in profits

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Every few months, just before the quarterly financial results, most of the technology and electronics companies release their earnings guidance for the next quarter. Samsung has just released its earnings guidance for the first quarter of 2015, and the story is pretty much the same as the last few – the company is profitable and making bags of money, but it’s less than before.

Samsung profits expected to fall 30%

This time around, Samsung has predicted that it made around 5.9 trillion won ($5.4 billion) in operating profit between January and March from about 47 trillion won in revenue ($43.2 billion). That’s approximately a 30% drop in profit and a slide in sales of 12% from the same time last year.

RELATED: Samsung announces fall in profits

Samsung Galaxy S6

Samsung has not yet provided any more details or possible explanation for the falling numbers, but of course the company is heading now into a more crucial quarter with the release of the Galaxy S6 and Galaxy S6 Edge – it’s flagship phones and the most hotly anticipated in years. Both smartphones have had great reviews, so if the pair of S6 devices can outperform the disappointment of the Galaxy S5, it could certainly help to turn Samsung’s fortunes around.

Have you ordered a new Galaxy S6 or Galaxy S6 Edge? Do you think Samsung is on the way out or can turn things around? Let us know in the comments below…

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