According to the electronics giant, it was a considerable influx of competition that caused the lower than expected results.
Wall Street analysts and investors, alike, were disappointed by the technology news that was recently released by Samsung in terms of its earnings, which missed the predicted mark by a notable amount.
Now, the tech giant has announced that the reason that the earnings were not as hoped, was due to competition.
This is not the first time that the company has had to leave technology news that shows that it knows how to excel but that it faces a considerable struggle when it comes to trying to maintain a tremendous market share across a landscape that is continually growing in its competition. The South Korean electronics company has shown several times that it is strong when it comes to leading the way but that it finds the situation challenging once a range of other players start to catch up in the game.
The Samsung technology news release reported second quarter earnings for 2014 which showed a 20 percent profit drop.
This, when compared to the same quarter during 2013. The company also saw a decrease in its revenue by 8.9 percent. This is the first time that the company recorded a year over year net profit drop since 2011 in the third quarter. Since that time, it has been maintaining a steady climb in this area.
That said, the Wall Street Journal has been reporting that Samsung has every intention of bringing two new high end smartphones to the market shelves “soon”. In all likelihood, this will occur before the end of the year. The strategy will be to help to hold off any more decline in revenue or losses in the market.
According to a technology news statement made by the company, “Prospects for growth remain unclear as competition over global market share intensifies in the mobile industry.” The second quarter of 2014 saw the company’s shipments at 74.3 million smartphones, which was strikingly below the predictions that had been made by Wall Street about the device sales under that brand name.