Seventh profit drop in a row for Samsung | RetailDetail

Seventh profit drop in a row for Samsung

Seventh profit drop in a row for Samsung

The Galaxy S6 is not performing as well as Samsung had hoped, which means the South Korean company will now face another quarterly profit drop, demonstrated by its profit alert.

"Misjudgment"

The Korean electronics group positioned its new flagship smartphone, the Galaxy S6, as the iPhone challenger, but it is not as popular as the group had anticipated. On the other hand, the S6 Edge is a hit thanks to its screen with curved edges, but Samsung underestimated the demand for this particular version.

 

According to the Wall Street Journal, Samsung had organized its production lines to create one Edge version for every 4 'classic' S6 models. In reality, demand for either smartphone is at an equal level, meaning that the S6 Edge production cannot keep up with demand.

 

Turnover down 8 %, profit down 4 %

In its quarterly update, the Samsung board explains it expects a 6,900 billion won (5.5 billion euro) operational profit for the quarter, which is 15 % better than the first quarter, but still down 4.03 % compared to the same quarter last year. That means the company will face a seventh straight quarterly profit drop.

 

Turnover is following the same trend: it reached 48,000 billion won (38.56 billion euro) in the April-June period, which is up 2 % compared to the first quarter, but down 8 % compared to the same quarter in 2014. The full numbers will not be released until later this month.

Questions or comments? Please feel free to contact the editors


Ceconomy sells its Russian division

21/06/2018

Ceconomy, MediaMarkt's parent company, has sold its onerous Russian division to local electronics chain M.video. The German electronics giant does not quit Russia altogether however, as it continues as shareholder of M.video.

LVMH's Bernard Arnault invests in refurbished phones

14/06/2018

BackMarket, a French start-up that wants to be a marketplace for refurbished smart phones, tablets and laptops, has secured a 41 million euro investment. The most famous new investor is Bernard Arnault, CEO of luxury group LVMH.

Coolblue closes hundreds of web shops

11/06/2018

Dutch e-commerce group Coolblue has terminated hundreds of its web shops, instead preferring one central web shop at coolblue.be/nl. This may be the precursor to an international expansion, the company says.

Xiaomi's European conquest goes through Paris

23/05/2018

Chinese smartphone manufacturer Xiaomi just opened a physical store in Paris, part of its ambitious European expansion plan. The brand is also dreaming of an American launch.

Fnac Darty and MediaMarkt Saturn enter purchase alliance

16/05/2018

French electronics retailer Fnac Darty has set up a purchase alliance with competitor MediaMarkt Saturn. Both companies will buy together when it comes to the European retail market.

Amazon looking to outbid Walmart in Flipkart deal

03/05/2018

The battle for dominance on the Indian e-commerce market seems to be stepping up a notch: Amazon may be looking to buy a majority stake in Flipkart, trying to better Walmart which already started negociations with the Indian online retailer.