Samsung’s profit slide continues
Galaxy S6, Edge, fail to reverse profit decline at Samsung
Samsung Electronics suffered a fifth straight drop in quarterly earnings as the Galaxy S6 and S6 Edge failed to reverse its declining share of the global smartphone market, the AP is reporting.
The company's overall earnings decline during the April-June quarter was 8 percent but it reported a much bigger decline of 38 percent in the mobile division's income. However, the decline in the mobile profit was smaller than the previous quarter's nearly 60 percent plunge.
The sharp profit drop in the mobile business came despite the launch of two flagship smartphones, the Galaxy S6 and the S6 earlier in the year. Samsung’s rampant growth in the mobile biz run into headwinds last year, squeezed in the premium segment by iPhone which launched bigger models and at the mid-market by Chinese phone makers.
Sales of the flagship S6 models fell short, with the Galaxy S6 failing to excite the market, while the Korean giant struggled to keep up with demand for the S6 Edge, which features a curved display and that is more difficult to produce.
Samsung's April-June net income was 5.8 trillion won ($5 billion), down 8 percent from 6.3 trillion won a year earlier. Sales fell 7 percent over a year earlier to 48.5 trillion won while operating income dropped 4 percent to 6.9 trillion won, in line with its earnings preview earlier this month. It generated 2.8 trillion won operating income from the mobile business compared with 4.4 trillion won a year earlier.