The company reported revenue of 48.54 trillion won ($41.35 billion), a 7 percent drop from 52.35 trillion won ($44.63 billion) in the June quarter past year.
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Samsung Electronics Co. signaled price cuts for its high-end Galaxy S6 smartphones to combat a market slowdown and surging sales of Apple Inc.s iPhones after posting a fifth straight profit decline.
“The mobile business plans to firmly maintain its sale of premium smartphones by flexibly adjusting the price of the Galaxy S6 and S6 Edge, and launching a new model with a larger screen”, the firm said.
Revenue in the chip-making unit posted the largest-ever 11.29 trillion won in the quarter, topping the prior high of 10.66 trillion won in the fourth quarter of 2010. Both sales and operating profit are up from the year-ago quarter.
The “increase in marketing expenses”, is an allusion to Samsung’s misjudgment of consumer response to its flagship smartphones.
Looking ahead to the third quarter, Samsung expects smartphone demand to grow slightly on quarter. Samsung has a number of other businesses where it could drive growth and more sales including the TV division, 14-nanometer semiconductor foundry, LCD panels, DRAM products, and IT & Mobile Communications (IM) division. Early sales estimate projects that Samsung will ship between 50M and 70M units of S6 and S6 Edge this year.
Samsung’s quarterly results are in, and the results, especially for the company’s mobile division, are not good.
But even more significant in Samsung’s statement is the promise of price “adjustments” for the S6 and S6 edge.
The Galaxy S6 and S6 edge were unveiled at Mobile World Congress in early March.
“While 2H 2015 is expected to present mounting challenges, the company will try to improve earnings”, Samsung said on Thursday.
The company has also been hit by problems in making the phone, according to reports from Bloomberg earlier this year.
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The company’s recent slump has stood in stark contrast to the performance of Apple, which has seen profits gain sharply on strong sales of its latest iPhone series.
