The company told analysts it expects to increase smartphone shipments with new model launches in Q3, and it will make strategic adjustments to its handset pricing.
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The results are in line with the South Korean company’s earnings guidance, given earlier this month. The mobile division’s operating profit slid 37.6% to 2.76 trillion won in the second quarter from a year earlier.
Samsung Electronics Co. missed analysts’ estimates of its second-quarter profit after the disappointing sales figure of its flagship smartphone, Samsung Galaxy S6, according to a report by Bloomberg. It’s already planning to introduce new premium smartphones: the company has already teased an event for August 13th, where it’s likely to introduce a new Galaxy Note and a larger S6 Edge.
The company blamed the fall in its device sales on failing to respond to the demand for the Galaxy S6 and S6 Edge, both of which were revealed at Mobile World Congress back in March. The company said it will adjust prices of its flagship smartphones depending on market conditions and roll out handsets with wider screens to tap deeper into the high-end segment. But the launch has failed to revive the company’s weak sales performance.
Samsung shares fell almost 3 percent after earnings announcement.
Samsung was not able to leverage the time between the release of the Galaxy S6 and the launch of the new iPhone.
Lackluster demand for its flagship Galaxy S6 smartphone and higher marketing costs led Samsung Electronics to another quarter of falling sales and profits in the April to June period. Q2 smartphone sales were down from the previous quarter, as well, and Samsung blames lower sales of older phones.
Samsung added that the “supply issues concerning the Galaxy S6 Edge have been addressed”. It was up 15.36 percent from the prior quarter, but down 4.03 percent from a year earlier.
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At the beginning of July, Samsung revealed that it was expecting a few deeply underwhelming second quarter results, and so it has proved. Sales and profits edged up on-quarter in Samsung’s mobile division, but it’s not performing anywhere like its heyday a few years ago.
