Skip to main content

Samsung predicts seventh straight profit drop despite Galaxy S6 launch

Samsung predicts seventh straight profit drop despite Galaxy S6 launch

Share this story

Samsung expects that its operating profit for the second quarter of 2015 will drop four percent from the previous year, falling from 7.2 trillion won ($6.26 billion) in Q2 2014 to an estimated 6.9 trillion won ($6.12 billion) in Q2 2015. If the figures are correct, it'll be Samsung's seventh straight slip in profits, with the company's smartphones continuing to falter in the market even as its chip division improves its earnings.

The estimated figures for this quarter are particularly important because they're the first to factor in sales of Samsung's Galaxy S6 and Galaxy S6 Edge. The Korean company released its latest flagship phones in April, and both were expected to address the company's sliding profits after the launch of the disappointing Galaxy S5. While the newer phones helped Samsung claw its way back from the 30 percent year-on-year profit drop it experienced last quarter, like the S5, they still weren't enough to bring the firm's electronics division back to a position of growing profits.

"Market expectations for S6 sales were way too excessive," analyst Yoo Eui-hyung told Bloomberg before figures were released. "Analysts are revising down this year's shipment forecasts for the S6 because demand for the Edge model is exceeding supply, while the other version isn't selling well given its limited differences with the iPhone 6."