That may be a small percent but operating profit for Q2 was 6.9 Trillion KRW which is about $5.9 Billion.
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Samsung said the operating profit of the information technology and mobile business division, one of the company’s main revenue sources, fell 37.5 percent on-year to 2.76 trillion won in the second quarter.
Reviewing its quarterly results, Samsung said smartphone shipments fell quarter-on-quarter due to low sales of its older mid/low-end models.
Samsung misread demand for the S6 models released in April, failing to produce enough three-sided screens for the Edge while the regular version struggled to challenge bigger iPhones.
The company said handset sales slipped 6.3 percent on-year in the second quarter to 89 million units, indicating that the Galaxy S6 series, which was launched in April, posted weak sales.
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.
Samsung announced this week that it would hold a “Galaxy Unpacked” event on August 13, with the company due to unveil its next Note device and a larger S6 Edge.
Samsung made no comment on how much the price will drop, only saying, “There’s a possibility that the third-quarter sales price could slightly drop”. 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.
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“While the numbers are in line with what’s been expected, the real story is that Samsung used to be this huge industry giant, dominating the smartphone field”, explained Bryan Massachusetts, vice president of client research at IDC, in an interview with the BBC. It is possible that the sales prices come down to under $500 after the Samsung price-cut. It is believed that the company’s pains are the result of Apple, which launched several larger iPhone models, luring customers away from Samsung. The company believes doing so will help improve its overall sales for this year.
