Samsung cuts Galaxy S6 and S6 Edge Price

Samsung’s net income for the three months ended June 30 was 5.75 trillion Korean won ($4.9 billion), down from 6.25 trillion won in the year-earlier period, the company said Thursday.

The chip business was the biggest contributor to the company’s bottom-line, with operating profit for the unit soaring 82.8 per cent to 3.4 trillion won.

“Despite the launch of Galaxy S6, improvement to earnings was quite marginal due to low smartphone shipments and an increase in marketing expenses for new product launches”, Samsung said in the statement.

In April, the company had hoped that its Galaxy S6 and S6 Edge phones would be the ray of hope that the company needed to recover from its downturn.

South Korean electronics giant Samsung reported less favourable revenue for the second quarter despite heavily promoting its brand new Galaxy S6 and S6 Edge smartphones.

Samsung said operating profit for its semi-conductor unit surged 80 percent in the second quarter to 3.4 trillion won.

In early March, Samsung launched its new flagship Galaxy S6 smartphone in two forms as part of its efforts to boost sales. Especially with the looming threat of Apple’s new phones on the horizon for the second half of the year.

Samsung Samsung Electronics Co Ltd (KRX:005930) seems to be eating humble pie as its inability to compete effectively with Apple in the premium smartphone market resurfaces. The regular version of the phone, the Galaxy S6, wasn’t as popular as expected, while it could not keep up with demand for the S6 Edge model, which features a display that curves on both sides that is more hard to produce.

The company’s components division was the one growth area in the quarter, with revenues up to KRW 17.87 trillion from KRW 16.23 trillion a year ago.

Once again, Samsung’s revenue was eaten into by competition from Chinese companies like Xiaomi, which pushed out Samsung as China’s top smartphone maker in 2014.

Samsung’s second quarter wasn’t all bad news.

However, it has seen sequential growth in operating profit amid improved sales at its chip business.