Samsung reports fifth straight quarterly profit drop

Overall sales were 48.5 trillion won (US$41.7bn), down 7pc on past year.

Based on the report, the company’s net profit for the recent quarter was at 5.75 trillion won or around $49 billion.

Hit by increased competition in the smartphone market, Samsung missed profit and revenue forecasts.

The results underscore the continuing challenges that Samsung faces in the smartphone market. Samsung’s sky-high growth in the smartphone industry came to a sudden stop in 2013 as bigger iPhone models lured buyers from Samsung phones and Chinese phone makers squeezed its sales in China.

SAMSUNG HAS REPORTED an eight percent drop in second-quarter profits, after the Galaxy S6 and Galaxy S6 Edge smartphones failed to turn the company’s fortunes around.

Samsung says the second half of 2015 will be challenging for the company.

This was certainly reflected in the company’s latest quarterly financial results, which it published yesterday.

Samsung shares moved in negative territory in Seoul trading, falling more than 1.6 percent in the morning session.

Samsung announced this week that it would hold a “Galaxy Unpacked” event on August 13, with the company due to unveil its next Note device and a larger S6 Edge. It generated 2.8 trillion won operating income from the mobile business compared with 4.4 trillion won a year earlier.

On a sequential basis, both operating profit and revenue were up 0.7 percent over the previous quarter for the business unit. Problems for the S6 Edge started when the number of handsets produces was lower than those demanded because of the device’s hard to manufacture curved screen.

Operating profit was at 6.9 trillion won for the quarter, down 4 percent over the year, from 7.19 trillion won in Q2 2014.

Despite slowing sales, Samsung remained the top global smartphone vendor in the second quarter.

Sales and profits edged up on-quarter in Samsung’s mobile division, but it’s not performing anywhere like its heyday a few years ago.

Samsung said that sales of its Galaxy S6 smartphone fell short of expectations because the company could not meet the demand for its flagship model.