Samsung revenues and profit plunge by a fifth in Q2

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Manufacturer claims weak demand for its mid- to low-end smartphones in Europe was partly to blame, as market share falls by almost a quarter in the past year

Samsung’s revenues and profits fell by a fifth in the second quarter of this year as sales of low- to mid-end smartphones in Europe weakened.

The mobile division reported Q2 sales of Won27.5 trillion (£15.9 billion), down 21 per cent from a year earlier, with net profit down by 20 per cent to Won6.25 trillion (3.6 billion).

This was despite the release of its flagship smartphone for this year, the Galaxy S5 (pictured), on April 11.

Samsung doesn’t break down device but analyst IDC forecasted that it shipped 74.3 million smartphones in the quarter, down by 3.9 per cent from the April to June period a year ago.

IDC also said its global smartphone market share had fallen sharply from 32.3 per cent to 25.2 per cent. However, it is still the clear market leader, with Apple accounting for 11.9 per cent of the market.

Samsung said demand for its low- to mid-end smartphones in Europe had weakened in the quarter, while some Chinese consumers had delayed buying smartphones pending the release of devices that will make use of new 4G broadband networks.

In an earnings call with investors, Samsung senior vice president Kim Hyun-Joon revealed the manufacturer plans to launch two high-end smartphones during the remainder of this year. He said one will feature a large screen, while the other will be made using “new materials,” but didn’t elaborate.

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