Galaxy S6 smartphones don’t ring true for Samsung Electronics’ profits

Operating profit sank 4.03 percent from a year ago to 6.9 trillion won, while sales dropped 7.3 percent to 48.5 trillion won.

Overall, Samsung recorded an eight percent drop in net profits in its second quarter 2015 financial results today, falling to 5.75 trillion won (£3.2bn).

Samsung Electronics Co. signaled price cuts for its high-end Galaxy S6 smartphones to combat a market slowdown and surging sales of Apple Inc.s iPhones after posting a fifth straight profit decline. In addition, Samsung says its strategy to improve revenues is to “flexibly adjusting the price” of both the Galaxy S6 and S6 edge.

However, it added demand for the S6 edge has exceeded demand, forcing Samsung mobile chief JK Shin to warn in April it would take several months to ramp up manufacturing to meet demand.

In early March, Samsung launched its new flagship Galaxy S6 smartphone in two forms as part of its efforts to boost sales.

Today’s U.S. single-family home data came in weaker than expectations with new single-family home sales declining in June.

The US tech giant reported a 38 percent profit jump for the second quarter last week to $10.7 billion.

Samsung Electronics fared quite well in the second quarter, with profits inching up compared to the previous quarter.

Samsung is slashing the price of the Samsung Galaxy S6 and the S6 Edge after sales reportedly proved disappointing.

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.

Apple has become a bigger threat to Samsung with its larger-screen devices, such as the 4.7-inch iPhone 6 and the 5.5-inch iPhone 6 Plus, and the Chinese company Xiaomi is also a competitor at the low end.

Going forward, Samsung has set its sights on India, where the smartphone market is growing steadily. Samsung has a number of other businesses where it could drive growth and more sales including the TV division, 14-nanometer semiconductor foundry, LCD panels, DRAM products, and IT & Mobile Communications (IM) division.