Samsung warns of slower smartphone growth in Q3

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Despite a number of product launches in recent weeks, manufacturer says growth could slow due to increased competition

Samsung has warned that growth within its smartphone business is likely to slow in its current operating quarter.

The manufacturer made the claim after it reported its Q2 financial results. Operating profit was Won9.5 trillion (£5.5 billion), up 47.5 per cent annually and nine per cent sequentially.

Its mobile division made up two thirds of this figure, with numbers hitting Won6.23 trillion (£3.6 billion), up 52 per cent from a year ago but down 3.5 per cent from the previous quarter.

Revenue was Won57.5 trillion (£33.6 billion), up by more than 20 per cent from the same quarter a year ago.

On May 23, Samsung announced that sales of its Galaxy S4 smartphone had hit 10 million units less than a month after going on sale, equating to four of the device sold every second.

In the past two months, Samsung has announced a number of additions to its smartphone portfolio, including the Samsung Galaxy S4 Mini, S4 Zoom and S4 Active.

Despite this, the manufacturer warned that growth within its smartphone division could still slow in the three month period to the end of September.

During an earnings call today, Samsung said: “The smartphone market will likely continue to grow in the third quarter but there’s a chance that the pace of growth may slow as competition intensifies with new model releases.”

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