Samsung Scared of iPhone 8? Looks Like It

Samsung appears to have some concerns about the impact Apple’s new iPhone 8 might have on its bottom line.

The company on Thursday (July 27) announced record earnings due in part to the success of its Galaxy S8 smartphone, but also because of the growth in its component business. However, there appears to be trouble on the horizon.

Credit: Benjamin Geskin

Credit: Benjamin Geskin

Although Samsung anticipates a heavy third quarter for smartphone purchases, the company cited unidentified competitors as potential problems for its business.

“In the second half, demand for smartphones and tablets is forecast to increase as the market enters a period of strong seasonality,” Samsung said in a statement obtained by BGR. “However, competition is expected to intensify as new smartphone models are released by competitors.”

Samsung went on to say that it plans to respond to that competition by launching its Galaxy Note 8 at a press event on August 23. Still, it won’t be enough to fix a fundamental problem.

MORE: Here’s How the Galaxy Note 8 Will Beat the iPhone

“Looking into the third quarter, revenue and profit are expected to decline QoQ due to increased marketing expenses associated with the launch of the new Galaxy Note and the reduced launching effect of the Galaxy S8 and S8+,” Samsung said.

“Samsung launches phones twice a year, but its mainstream flagship Galaxy S line comes out in the spring, so by the fourth quarter the launch buzz has diminished.” said Avi Greengart, research director at GlobalData.

Samsung’s comments come amid reports that Apple is planning to announce its iPhone 8 in September. While there’s a good chance that Apple’s handset won’t hit store shelves until later in the year, two other iPhones, the iPhone 7s and iPhone 7s Plus, are expected to make their debut sooner.

There’s another factor to consider: Samsung’s component business. “Samsung makes most of its profits from selling components, often to its phone competitors, and component sales…

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