Samsung is predicting yet another quarterly drop in profits, despite the launch of the excellent Samsung Galaxy S6.
Last week reports from South Korea suggested that the Galaxy S6 had proved a disappointment for Samsung, and the company now appears to have confirmed those rumours.
The South Korean manufacturer has revised its earning guidance for Q2, and its projections don’t make for particularly great reading.
Operating profit will apparently drop four percent from the same time last year to 6.9 trillion won (£3.9 billion). This will mark the company’s seventh successive drop in profits – a worrying trend for sure.
It’s particularly worrying when you consider that Q2 of 2015 included the launch of Samsung’s best phones in years, the Samsung Galaxy S6 and Samsung Galaxy S6 Edge. They represented a lot of development funds and a radical shift in philosophy to one that values premium design.
Given that last year’s disappointing Samsung Galaxy S5 was seen as a major factor in the company’s underperformance of late, this continued slide with significantly improved hardware will come as a major blow to Samsung.
Of course, it’s not all bad. Samsung’s new phones have helped it recover from a disastrous fourth quarter, where the year-on-year difference in profits was 30 percent.
What this means is that while the Samsung Galaxy S6 has been a strong performer, it hasn’t been as strong as Samsung had hoped or predicted. Its expectations were a little too optimistic.
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Analysts have also pointed out that while the Galaxy S6 hasn’t quite sold in sufficient numbers, the Galaxy S6 Edge hasn’t sold as much as it could have due to insufficient supply to meet demand.
Check out our comparison of the Samsung Galaxy S6 with two of its biggest rivals in the video below.
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Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.