Sales were down approximately 8% from the year-ago quarter, totalling 48.54 trillion Korean won ($41.3 billion).
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Operating profit was at 6.9 trillion won for the quarter, down 4 percent over the year, from 7.19 trillion won in Q2 2014. Ltd. (SSNLF) on Thursday reported a 9 percent year-over-year decline in second-quarter profit, reflecting continued weakness in its flagship handset business.
Samsung said the improvement to its phone profit was marginal due to low-volume shipments and high marketing expenses.
A chunk of those profits came from memory chips, where Samsung has long dominated as the world’s No. 1 manufacturer by sales. It is believed that the company’s pains are the result of Apple, which launched several larger iPhone models, luring customers away from Samsung. And it’s looking to other parts of its business, such as semiconductors, display panels, smart TVs, and health equipment, to help make up for lost mobile sales. Some rumors indicate that this new addition will be a Galaxy S6 Edge Plus with a 5.7-inch screen that is curved on both sides, as well.
The decline in mobile profit was smaller than the previous quarter’s almost 60 percent plunge, but it extended the mobile division’s losing streak.
The results underscore the continuing challenges that Samsung faces in the smartphone market. Sales in the company’s mobile division dropped 7.3 percent from a year ago to $21.73 billion. Samsung’s operating income stood at five.nine billion U.S. dollarscontinuing its steady recovery after a surprising earnings shock in the third quarter of past year. Whether that will change with the S6’s price drop and Samsung’s upcoming phones remains to be seen.
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As Samsung earnings continue to fall for a fifth straight quarter, the company’s loss might prove to be the consumers’ gain. But the bigger story perhaps was the fact that the company reported disappointing smartphone sales, including that of its flagship smartphones, the Samsung Galaxy S6 and Samsung Galaxy S6 Edge.
