Samsung warns on earnings as Galaxy S6 supply shortage hitsComments Off on Samsung warns on earnings as Galaxy S6 supply shortage hits
The South Korean company said its second-quarter earnings are likely to miss analyst expectations in an intensely competitive market that also features competitors such as China’s Xiaomi.
Samsung announced that its operating profits are set to fall 4% to 6.9 trillion won (£3.9 billion) year-on-year, compared with forecasts of 7.2 trillion won.
The company now makes more profit from semi-conductors than mobiles.
“It doesn’t matter how competitive you are if overall demand is weak,” said HMC Investment analyst Greg Roh.
“Third-quarter earnings will likely be similar to the second quarter,” he added.
The latest update is the first quarter to include sales of the Galaxy S6, which was heralded as Samsung’s great hope.
A failure to make enough of the curved-screen and flat-screen models to meet demand hit earnings, while Apple’s iPhone 6 continues to grow in popularity across the globe.
Samsung is currently being taken to court in China over the software it loads on to its handsets.