What can't sell Galaxy S6s and keeps going down on you? Samsung and its profits
Smartphone giant feeling mobe market saturation sqeeze, suffers after supply shortage
Samsung Electronics's profits fell eight per cent, year on year, in its second quarter of 2015 – as sales of its Galaxy S6 failed to gain traction.
Profit for the three-month period, which ran from April to June, fell to 5.75tn won ($4.9bn, £3.2bn). Profit for the mobile division fell to 2.76tn won, from 4.42tn won a year earlier – a 62 per cent drop.
Sales also took a 7.2 per cent hit, year on year, to 48.5tn won ($41bn, £26bn).
The results are in line with Sammy's warning earlier this month that it was going to miss its previous earnings guidance for the April-June quarter.
This is now the South Korean goliath's seventh successive quarter of decline in year-on-year terms.
The Wall Street Journal noted [paywall] that the company initially expected to sell four Galaxy S6 smartphones for each Galaxy S6 Edge that it sold, and set up its production facilities accordingly. Instead, demand was much likely closer to even for the two devices, a source told it.
Sammy has been suffering due to poor Galaxy S6 smartphone sales, after the model experienced early supply shortages. ®