Samsung Estimated Q2 Profit, Revenue Fall Again as Troubles Persist
The company had been hoping for a big financial turnaround after the release of the new Galaxy S6 and S6 Edge, which went on sale April 10 after almost two months of intense build-up in the marketplace. The new Galaxy S6 and Galaxy S6 Edge smartphones attracted plenty of consumer interest and so many preorders that the company quickly boosted its production targets for the new devices. Instead of producing 7 million Galaxy S6 and S6 Edge devices in April, Samsung has placed orders for an extra 1 million units, boosting its order to 8 million smartphones for the month, according to earlier reports. Samsung had previously said it had ordered 5 million of the smartphones for March, bringing the total production for the two months to 13 million phones. Those production increases, however, didn't include enough S6 Edge phones, which are in higher demand. In late April, Samsung reported a $4.63 billion net profit for the first quarter of 2015, which was down 39 percent from the same quarter one year prior, when the company had a $7.04 billion net profit. For the South Korean smartphone and electronics maker, it continues to be a disappointing trend downward that's been repeated often over the last several years. Samsung's first-quarter revenue of $43.8 billion was down from $49.9 billion for the same quarter one year prior. Operating profit for the first quarter dropped about 30 percent to $5.64 billion from $7.8 billion in the same quarter one year prior.At the time, Samsung released a statement with its earnings report that said it expected second-quarter sales to rebound and earnings to improve led by increased sales of its flagship Galaxy S6 and S6 Edge smartphones. The company is still waiting to meet those expectations.
Samsung does not break down earnings figures for its various divisions so figures for its mobile device division were not available separately.