Samsung Hit With Seventh Straight Drop In Profit

Android / Business / Mobile

Samsung announced Monday that it is expecting a second quarter profit loss which means this will be the seventh straight loss for the company. Revenue was projected to be around 53 trillion won ($46.6 billion USD) but Samsung is likely only going to manage 48 trillion won ($42.24 billion USD) in revenue. Those numbers translate into 4.2% decline from a year ago for a profit of “only” 6.9 trillion won ($6.07 billion USD) which was short of the expected 7.2 trillion won. Before the decline started Samsung was experiencing growth and record profits with their Galaxy line of mobile devices. Since Apple’s redesign of the iPhone and the popularity of Chinese makers Xiaomi and Huawei, Samsung is feeling the heat in the mobile market.

With the release of the Galaxy S6 and Galaxy S6 Edge this year Samsung saw many rave reviews and positive user feedback from the devices. Both devices are much more premium than their predecessors with Samsung opting for more premium materials and less plastic. The problem now is that Samsung is running out of the devices faster than it can make them.

Despite Samsung mobile chief JK Shin’s prediction that the flagship S6 line will set a Samsung record for unit shipments, the Galaxy S6 Edge is expected to be in short supply for the year due both to its expected popularity and to the difficulties in crafting its screen.

Of course this seventh straight profit decline doesn’t spell doom and gloom for Samsung. They have every chance to turn things around and come out on top next quarter as the consumer electronics market is sometimes a tumultuous ride.

What do you think of Samsung’s profit losses? Can they turn it back around? Let us know in the comments below or on Google+, Facebook and Twitter.

  Source: CNET
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