A FactSet survey of analysts predicted 5.6 trillion won of net income.
Advertisement
Operating profit for the company’s mobile and IT unit was down 37.6 percent year on year, with revenue declining 8.4 percent.
The firm also reported a 4 percent fall in second-quarter profit and ruled out a “special dividend” similar to a big year-end payout for 2014.
The mobile business reported an operating profit of 2.76 trillion won, down from 4.42 trillion won a year earlier.
Samsung said it expects growth in the smartphone market to slow in the second half of the year, with only a small sequential increase in sales in Q3.
Samsung was hit by two problems with its Galaxy S6 series.
Samsung is dropping prices on its flagship smartphone models after a dip in sales caused the Korean tech giant’s profits to slide for the seventh consecutive quarter.
Samsung, the world’s largest smartphone maker by shipments, is continuing to lose market share of its flagship handset business to U.S. rival Apple, Inc. Do any of you own one of the newer Samsung Galaxy smartphones?
Samsung is still trying to figure out how to continue to hold its shrinking lead in the global smartphone market in a competitive atmosphere that has seemingly placed a target on Samsung’s corporate back.
Samsung’s chip division was the biggest beneficiary of the new S6 as its mobile unit switched to in-house applications processors and modem chips instead of those from Qualcomm Inc.
The company hopes to boost sales by “introducing new premium smartphone models”.
Samsung said it shipped 89 million handsets in the second quarter. Reports indicated Samsung will launch the Galaxy Note 5 on august 13, which goes against the company’s traditional practice of unveiling new products in September during the IFA event. The stock has lost 5.2 percent this year, compared with a 6.6 percent gain in the Kospi index.
Advertisement
“We will strive to maintain solid sales of high-end smartphones by flexibly adjusting S6 and Edge prices depending on marketing circumstances, while also launching new large-display models”, Park Jin-Young, vice head of communications at Samsung’s mobile division said during a conference call.
