Apple Inc (AAPL)’s New Iphone 6 Hurts Samsung Electronics Co Ltd (005930) Sales

What seems to be an unimaginable situation for the electronics giant, which dominated the Smartphone market for past several years, Samsung Electronics Co Ltd (KRX:005930) is likely to announce poor financial results tomorrow. Added to the poor financial result is the stiff and sharply rising competition from Apple Inc (NASDAQ:AAPL)’s iPhone 6.

According to Bloomberg, analysts are cutting their profit margins for the company on a regular basis and as per the estimates, the company might lose up to 47% of its operating margin during this quarter and a drop of 15% in its sales. These would be the steepest declines for the Smartphone-maker since 2009. Claire Kim, Daishin Securities Co. analyst, said,

“We all know Samsung’s third-quarter earnings will be pretty ugly. The earlier release of its new phones could be reflected in its third-quarter earnings, it could give them a slight boost.”

In addition to it, the huge success of Apple Inc (NASDAQ:AAPL)’s iPhone 6 at the global level is another reason of worry for Samsung Electronics Co Ltd (KRX:005930). Apple sold as many as 10 million devices on its launch weekend excluding China, which makes this figure much more impressive. The iPhone-maker is going to launch its bigger phones in China on October 17 after receiving required approvals from the Chinese authorities.

Apple (AAPL)

Chinese customers would be able to book iPhone 6 starting October 10 for preorders from the company. The Chinese operators providing services to iPhone 6 have offered pre-order schemes for their customers and according to a recent report, China Unicom, China Mobile, and China Telecom have accumulated nearly 1 million pre-orders for iPhone 6. These orders came in within 6 hours of the opening of booking and if the phones sold by the distributors were to be included, it would easily cross the 2-million mark.

Experts are expecting anywhere between 2.5 million to 5 million device sales during the launch weekend in China, which would bring Apple Inc (NASDAQ:AAPL)’s launch weekend sales to at least 12.5 million.

This article has been written by Prakash Pandey and edited by Serkan Unal.

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