The world’s largest smartphone maker said net profit for the April-June period stood at 5.75 trillion won (S$6.73 billion), down from 6.25 trillion won a year ago and slightly below analyst estimates.
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Suwon, South Korea-based Samsung has now reported its seventh consecutive quarter of earnings drop amid the continued slowdown in its core smartphone business as it grapples with increased competition.
Samsung tried to smooth over the tough operating conditions in the smartphone market by saying the overall drop in smartphone shipments was due to declining shipments of older middle-to-low end models.
The company said that it would be “adjusting” the prices of its two flagship phones in order to “maintain” momentum.
KitGuru Says: The Samsung Galaxy S6 Edge in particular is a very nice device, so I am a little surprised to hear that it isn’t selling that well.
That was in line with the earnings guidance Samsung issued earlier this month but fell short of analyst expectations for a 7.2tn won return. While this could be a major risk for the company from a financial standpoint, it’ll be great news for us buyers.
On a sequential basis, both operating profit and revenue were up 0.7 percent over the previous quarter for the business unit. Simply wanting a bigger display is no longer a reason to buy Samsung’s devices, and its smartphones can’t reach the low prices of those from Chinese and Indian vendors. Problems for the S6 Edge started when the number of handsets produces was lower than those demanded because of the device’s hard to manufacture curved screen.
Samsung didn’t state how many smartphones it shipped in the quarter, nor how its newest flagships are fairing in the market.
Yet operating profits for the division slipped to 2.76 trillion won (£1.5 billion) from 4.42 trillion won (£2.4 billion) the same time a year ago.
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Nevertheless, Samsung expects the smartphone market’s growth to continue slowing down for the second half of 2015, thus prompting the company to “flexibly adjust” its prices for the Galaxy S6 and S6 Edge, much to its consumers’ delight, according to Mashable.
