Samsung’s Profits Plunge for the 7th Consecutive Quarter

Yesterday, it was reported that Samsung’s investors are citing concerns that the company’s flagship phone, the Galaxy S6, isn’t hitting its sales estimates, ahead of its second-quarter earnings announcement and today, the Korean tech giant has revealed that its operating profits fell about 4% from the same quarter last year, suggesting that the sales of its new flagship smartphones were significantly worse than expected, The Wall Street Journal reports.

Yeosu expo samsung pavilion by samoo01

Samsung has today announced that it expects to earn just 6.9 trillion Korean won ($6.1 billion) in operating profit for the three months ended June 30, which is well below the 7.23 trillion won analysts were expecting, with revenue dropping to 48 trillion won, down 8.4% from the same period last year. The figures mark the Korean company’s seventh consecutive profit decline, with analysts putting the blame on poor sales, coupled with a botched launch of its flagship Galaxy S6.

According to Fortune’s Philip Elmer-DeWitt, the world’s largest smartphone manufacturer is “feeling the squeeze between Apple and Xiaomi”. On the low end, it’s getting undercut by Chinese manufacturers like Xiaomi, while on the high end, it lost a key marketing advantage when Apple introduced a pair of larger iPhones.

Part of the problem was logistical. Samsung released two versions of the device, one with a flat screen and one with a screen that curved on the edges. The regular S6 didn’t sell as well as expected, and the S6 Edge proved hard to manufacture. Samsung couldn’t keep up with demand.

“The failure to manage the initial shipment for the Galaxy S6 series is the primary reason” for disappointing sales, Lee Ka-keun, an analyst at KB Securities, told the AP. Samsung is bringing on a third plant to boost production.

Full results for Samsung’s second quarter are due for release later this month.

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  • winnertakesteve

    is anyone else having issues viewing this site on an iPhone and getting super aggressive ad-redirects that basically make browsing impossible?

  • bartek

    Yes, it keeps redirecting me, and then launching appstore… Makes me want to not visit this site.
    Do the admins watch these comments?

  • Hi guys, what province are you located in? We’re in BC and not seeing this, so we’re having a hard time recreating it. People in ON have told us it’s affecting them. Rest assured this is not us and we would never do this. We’re investigating, thanks for your patience. Any screenshots or details can be emailed to me. Thanks

  • Yes we do! Email us any screenshots and exactly what happens. We’re trying to fix this.

  • einsteinbqat

    Indeed. It just happened to me. MTL 07.06.2015, 23.09.

  • einsteinbqat


  • einsteinbqat


  • David

    Yes I am seeing it and try to avoid browsing the site on my iPhone as a result. I am in BC

  • kabsalsa

    I am in Ontario but don’t have this issue

  • Greg

    Got redirected and AppStore launched as well. Very annoying!

  • Greg

    I am from Vancouver BC by the way

  • Thanks!

  • winnertakesteve

    Seems to be back to normal today! Brought it up because I figured you guys probably wouldn’t have intended the behaviour and would want to know! Thanks!

  • Thanks so much for letting us know! Don’t hesitate if you see something like this in the future, sometimes they are geo-targeted so I don’t see them in BC.