Bishnu15
Member
- Joined
- 7 Apr 2012
- Messages
- 1,258
- Reaction score
- 1,212
Even after the release of its latest flagship Galaxy S6 phones in April, Samsung is still looking for a way to turn its fortunes around.
Samsung is still trying to figure out how to continue to hold its shrinking lead in the global smartphone market in a competitive atmosphere that has seemingly placed a target on Samsung's corporate back.
In its second-quarter earnings report, released July 30, the news for Samsung wasn't great. Revenue in the latest quarter fell 7 percent to $41 billion from $44.5 billion one year ago, and net profit dropped 8 percent to $4.9 billion from $5.3 billion in the second quarter of 2014.
The company's mobile products revenue, which includes smartphones, fell 6.86 percent in the second quarter to $21.7 billion, down from $23.3 billion one year ago. Samsung does not break out individual numbers for its smartphone and tablets sales. The mobile products unit's operating profit of $2.36 billion fell 37.6 percent from $3.79 billion for the same period one year ago.
The news was tough again for Samsung, which has been hit by a string of disappointing earnings reports for some time now as its chief competitor, Apple, continues to rake in huge revenue and profits from its popular iPhone 6 and 6 Plus smartphones. In April, Samsung released its latest flagship smartphones, the Galaxy S6 and Galaxy S6 Edge, to battle back against Apple's phones, which came out in September 2014.
To counter sluggish smartphone sales and try to fire up the market, Samsung said it "plans to firmly maintain its sale of premium smartphones by flexibly adjusting the price of the Galaxy S6 and S6 Edge," while launching another model with a larger screen.
Earlier reports said that Samsung's sales of Galaxy S6 Edge smartphones, with their innovative displays that wrap around both front edges of the handset, were hampered due to supply issues because the company had underestimated consumer demand of the S6 Edge model and didn't order enough of the devices. Those supply problems have now been addressed, according to the company, but the question remains whether those sales opportunities have now been lost as consumers might have moved on to other devices.
In the meantime, Samsung's IT and mobile communications division "is expected to face a difficult business environment" going into the rest of the year, the company stated. "New middle- and low-end models will also be introduced, and the IM Division will continue to work on improving efficiency of expenditures."
Things have been going so badly for Samsung lately that it announced earlier in July that it will unveil the new editions of its flagship mobile devices at a special Samsung Unpacked 2015 preview event on Aug. 13 at Lincoln Center in New York City, about a month before its normally scheduled September launches so that it can try to beat Apple in the marketplace, eWEEK reported recently. Most likely to be touted will be the latest version of its Note phablet, probably to be called the Note 5, as well as an even-larger version of the Galaxy S6 Edge, just introduced in April with its standard Galaxy S6 stablemate.
Read more at: Samsung's Smartphone Sales Woes Continue in Q2
Samsung is still trying to figure out how to continue to hold its shrinking lead in the global smartphone market in a competitive atmosphere that has seemingly placed a target on Samsung's corporate back.
In its second-quarter earnings report, released July 30, the news for Samsung wasn't great. Revenue in the latest quarter fell 7 percent to $41 billion from $44.5 billion one year ago, and net profit dropped 8 percent to $4.9 billion from $5.3 billion in the second quarter of 2014.
The company's mobile products revenue, which includes smartphones, fell 6.86 percent in the second quarter to $21.7 billion, down from $23.3 billion one year ago. Samsung does not break out individual numbers for its smartphone and tablets sales. The mobile products unit's operating profit of $2.36 billion fell 37.6 percent from $3.79 billion for the same period one year ago.
The news was tough again for Samsung, which has been hit by a string of disappointing earnings reports for some time now as its chief competitor, Apple, continues to rake in huge revenue and profits from its popular iPhone 6 and 6 Plus smartphones. In April, Samsung released its latest flagship smartphones, the Galaxy S6 and Galaxy S6 Edge, to battle back against Apple's phones, which came out in September 2014.
To counter sluggish smartphone sales and try to fire up the market, Samsung said it "plans to firmly maintain its sale of premium smartphones by flexibly adjusting the price of the Galaxy S6 and S6 Edge," while launching another model with a larger screen.
Earlier reports said that Samsung's sales of Galaxy S6 Edge smartphones, with their innovative displays that wrap around both front edges of the handset, were hampered due to supply issues because the company had underestimated consumer demand of the S6 Edge model and didn't order enough of the devices. Those supply problems have now been addressed, according to the company, but the question remains whether those sales opportunities have now been lost as consumers might have moved on to other devices.
In the meantime, Samsung's IT and mobile communications division "is expected to face a difficult business environment" going into the rest of the year, the company stated. "New middle- and low-end models will also be introduced, and the IM Division will continue to work on improving efficiency of expenditures."
Things have been going so badly for Samsung lately that it announced earlier in July that it will unveil the new editions of its flagship mobile devices at a special Samsung Unpacked 2015 preview event on Aug. 13 at Lincoln Center in New York City, about a month before its normally scheduled September launches so that it can try to beat Apple in the marketplace, eWEEK reported recently. Most likely to be touted will be the latest version of its Note phablet, probably to be called the Note 5, as well as an even-larger version of the Galaxy S6 Edge, just introduced in April with its standard Galaxy S6 stablemate.
Read more at: Samsung's Smartphone Sales Woes Continue in Q2
