Samsung’s net profit dropped to 5.75 trillion won ($4.9 billion) in the second quarter, a decline of eight percent from the 6.25 trillion won it posted a year ago.
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Net income, excluding minority interests, fell to 5.63 trillion won ($6.71 billion) in the three months ended June, the Suwon, South Korea-based company said on Thursday. The company says shipments of the flagship Galaxy S6 line have increased since launch, and that it will maintain sales of the premium smartphones by “flexibly adjusting the price of the Galaxy S6 and S6 Edge”.
Samsung added that the “supply issues concerning the Galaxy S6 Edge have been addressed”.
Hoping to recover from its insufficient first quarter sales, Samsung relied on the profits it will earn following the release of its flagship handsets the Galaxy S6 and Galaxy S6 Edge in April.
Overall, revenue for the technology giant in the second quarter fell 7.3% from a year earlier to 48.54 trillion won. Samsung will reportedly unveil it at its Unpacked event on August 13, alongside the new Galaxy Note 5.
Although the new S6 Edge delivered a new design as promised, it did not translate into revenue for the smartphone maker as expected.
Looking ahead to the third quarter, Samsung expects smartphone demand to grow slightly on quarter.
The demise of its mobile unit is largely due to it falling short against Apple’s iPhone 6 in its high-end mobile device sales, in addition to the emergence of heavy competition in Xiaomi, Huawei and Lenovo in the mid-to-entry-level Chinese mobile market. Unlike its mobile and consumer electronics businesses that failed to meet expectations, though, the company’s memory chip and processor division seems to be doing very well.
The profits represent a drop of more than 37% from a year ago.
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Samsung is slashing the price of the Samsung Galaxy S6 and the S6 Edge after sales reportedly proved disappointing. The division logged profits of two.nine billion dollars – a five-year high – and all-time record sales of nine.seven billion dollars.
