Samsung Q2 results signal further drop in profit

Samsung said that it will be “adjusting” the price of its S6 phones going forward in order to drive up shipments. The announcement comes in the company’s latest earnings report, which makes for grim reading for the South Korean firm. Samsung also noted the supply issues that plagued the Galaxy S6 edge have been addressed, which is a good indication that the another curved smartphone is en route.

This is nearly the same situation that the company found itself in during the first quarter of this year.

Digital media and appliances division sales declined 14 percent last year to 11.20 trillion won, with visual devices sales down 176 percent.

Samsung led the market with a 21.7 percent market share, even though sales dipped from a year earlier and its market share was below the 24.8 percent in the same period a year ago.

The regular Galaxy S6 also took a beating from Apple’s bigger iPhones.

It will now be looking to bounce back from this disappointment with the release of several new premium devices, with an event scheduled for August 13 expected to see the revealing of the Galaxy Note 5 and the Galaxy S6 Edge +.

“Sales of S6 devices are expected to shrink further in the third quarter and its smartphone slump could spill over to other component businesses, including chips”, he said.

Market research firm global Data Corp said Samsung, still the world’s largest maker of smartphones, was the only top-five smartphone vendor that lost market share during the second quarter, falling to 22 percent from 25 percent the previous year. Early sales estimate projects that Samsung will ship between 50M and 70M units of S6 and S6 Edge this year. Its second quarter profit increased to 3.4 trillion won from 1.86 trillion won a year earlier. Operating profit and sales are estimated at 6.9 trillion won and 49.5 trillion won, respectively.

The results come against a backdrop of continuing record quarterly results at smartphone rival Apple.

The company painted a rosy picture for its semiconductor business, however, adding the release of new smartphones with high-end features will help push up demand for its chip products as well.