Samsung’s record profit run ends after reportedly slow Galaxy S9 sales

Samsung Electronics has reported record profits for every quarter in the past year, but it looks like that run is at an end. The company just released earnings guidance of 14.8 trillion won ($13.2 billion) in operating profit off 58 trillion won ($51.8 billion) in revenue for Q2, which would represent a 0.7-percent decline in sales and an 11-percent increase in profit year on year. Last quarter, however, Samsung made 15.64 trillion won in profit from revenue of 60.56 trillion won, its strongest results ever.

Analysts speaking to the Financial Times and The Wall Street Journal say that poor sales of the Galaxy S9 have weighed on Samsung’s bottom line in the second quarter; it’s reportedly sold the lowest of any flagship Samsung phone since the Galaxy S3, with expected shipments of 31 million units this year. The 2016 Galaxy S7 is said to have been Samsung’s biggest hit, selling about 50 million units.

Things may get better for Samsung later in the year, but sales of OLED panels could disappoint. Apple is reportedly expecting a new 6.1-inch LCD-based iPhone to make up a higher proportion of sales in its lineup this year, and is said to be bringing LG Display on board as an alternative OLED supplier for iPhone X models, which would have the potential to limit Samsung’s ability to sell panels and charge a premium.