It was a result that was suspected, but now it’s pretty much official: It was announced today that Samsung profits are down four percent in the second quarter compared to the same quarter a year ago, falling to 6.9 trillion won ($6.13 billion USD). While it’s not quite all bad news – this quarter has been Samsung’s best over the last four quarters – tellingly, this quarter of loss is Samsung’s seventh period of registering annual decline.
There are a lot of subtle factors that have contributed to this result – despite the dam-busting popularity and critical acclaim of the Galaxy S6 and Galaxy S6 Edge, they were greeted with a much more competitive smartphone market this year and a decline in demand from China and Europe. The supply issues that initially plagued the Galaxy S6 Edge have also been pointed to as a pain point. It’s also been pointed out that Samsung’s strategy of moving away from low and mid-range devices may have affected overall sales. Samsung’s middling performance is probably the biggest indicator yet that the global smartphone marketplace is changing in ways that see less demand for high-powered, high-performance handsets.
What do you think about Samsung’s quarterly financial results? Let us know your thoughts in the comments below.
