Samsung Says Phone Business Is Tough and Likely to Remain So

The big takeaway from Samsung’s just-released earnings report is that the mobile business is tough, even for the company that dominates it.

Samsung may have passed up Apple in market share, but the company is nowhere close in other areas, including profit margins.

The company saw second-quarter mobile sales drop 12 percent, but profit in the business that includes phones and tablets fell 31 percent amid stiff competition. The company had already warned earlier this month that the second quarter would be a tough one.

Samsung’s global smartphone market share dropped seven percentage points from a year ago, according to IDC.

Looking ahead, Samsung said that the smartphone business will grow in the seasonally stronger second half of the year, but that it expects more competition in the low-end and mid-range of the business, especially in emerging markets. Tablets, too, are expected to see strong competition on price, but the company said it expects fourth-quarter sales to see “substantial growth” thanks to heavy promotion.

Samsung is expected to introduce a new Galaxy Note phablet, but archrival Apple is believed to be readying two new iPhone models, one of which is expected to sport a 5.5-inch screen, making it a more direct rival to the Galaxy Note line.

This article originally appeared on Recode.net.

Contributions are a key part of the future of Vox

Readers rely on Vox for clear, nuanced coverage that not only illuminates the issues, but poses solutions, too. And we rely on help from our readers: Advertising and grants cover the majority of our costs, but we count on contributions to help us close the gaps in our budget. In fact, we’re looking to reach 95,000 individual contributions before the end of the year. Will you make the next contribution right now? Our average gift is just $20 — and it goes a long way in helping us keep our work free. Vox is here to help everyone understand what’s shaping the world — not just the people who can afford to pay for a subscription. We believe that’s an important part of building a more equal society. Join that mission by making a contribution today.

One-Time Monthly Annual

$5/month

$10/month

$25/month

$50/month

Other

$

Yes, I'll give $5/month

Yes, I'll give $5/month

We accept credit card, Apple Pay, and Google Pay. You can also contribute via