Korea electronics giant and one of Apple’s tech rivals Samsung sees its net profit fall by 8 per cent in the second quarter of the year. Analysts blame the tight competition between Apple’s iPhone and new Chinese smartphone rivals deterring its own line.
Meanwhile, Samsung’s semiconductor department had increased its profit, helping narrow the losses.
The mobile division had fallen to 2.76tn won from 4.42tn won a year earlier. Samsung said the sales of Galaxy S6 fell short of expectations because the demand was so high for the product but production had been slow.
Vice President for Mobile Business Park Jin-Young, the company hopes to scale up its phone sales business for better profit in the coming quarter as budget models are announced.
Samsung has been in lukewarm water since 2013 as temperature slowly rises due to the increasing competition in the smartphone market. It is the fifth time the tech giant had seen its quarterly profit drop consecutively.
Meanwhile, their pre-earnings guidance had been accurate in foreseeing the fall in profits.