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Samsung Q2 profits fall as smartphone growth slows
2015-07-30 08:49:00| Telecompaper Headlines
(Telecompaper) Samsung Electronics reported second-quarter net profit down to KRW 5.75 trillion from KRW 6.25 trillion a year ago, hurt by weaker results in consumer electronics and mobile phones. Revenues fell to KRW 48.54 trillion from KRW 52.35 trillion a year ago, and operating profit dropped to KRW 6.90 trillion from KRW 7.19 trillion. At the mobile division, revenues of KRW 26.06 trillion were up 1 percent from the first quarter but fell compared to KRW 28.45 trillion in the year-earlier period. Operating profit at the division nearly halved year-on-year, to KRW 2.76 trillion from KRW 4.42 trillion. Samsung said the sequential improvement in results was thanks to the launch of the Galaxy S6 smartphone, which helped increase the average selling price. However, smartphone shipments were still down compared to the previous quarter, as the S6 could not offset slower sales in the low-end and mid-range markets. Samsung said it expects growth in the smartphone market to slow in the second half of the year, with only a small sequential increase in sales in Q3. It plans to focus on the high end of the market, with strategic pricing of the S6 and launching more large-screen models. This should help grow smartphone shipments from Q3 while tablet sales are expected to remain flat.
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Category:Telecommunications