The disappointing sales of the Samsung Galaxy S6 weigh on profits


The Korean automaker, on Tuesday revised its second quarter results down. This decline is notably due to the commercial failure of its Galaxy S6.

Of production delays but especially the less successful Galaxy S6, rival of the iPhone which cases he, worldwide, are expected to reduce second quarter results of Samsung Electronics branch.

The South Korean group has indeed announced plans an operating profit of 6,900 billion won (5.5 billion euros) in the period April-June, down 4.03% on a year. This is the seventh consecutive decline in quarterly results of the manufacturer.

Revenue down 8% year on year

Analysts surveyed by Bloomberg expected, they, for the quarter positive operating result of 7 200 billion, unchanged from the corresponding period of 2014. It is, however, an increase of 15% on the first quarter of the current year. Revenues should he, out to 48,000 billion won (analysts had expected 53,000 billion Ed), down more than 8% year on year but up nearly 2% from the previous quarter .

“Sales of the Galaxy S6 were significantly weaker than expected” , both because it hard to win against the iPhone and because the Edge Galaxy S6, equipped with a curved screen, experiencing production delays, notes Greg Roh at HMC Investment Securities Co.