The South Korean tech giant Samsung has recently revealed that the second quarter profits of the company are observed to be lower than expectations of its latest Galaxy S6 flagship and hence the operating income declined 4% for the Q2 of 2015 to $6.1 billion by the end of June.
Despite opening several new production line to meet the demand, the reason for the declined sales is said to be the shortage in the supply of these devices alongside the meek demand from the major markets across the world, as said by Samsung.
The sales of Samsung Galaxy S6 flagship clocked in at $42.24 billion (48 trillion won) however, the expectations were around $46.64 billion (53 trillion won) from 37 analysts compiled by Bloomberg.
The overall decline observed in sales is 8.3% as compared to the same quarter of 2014.
It means that the lastest and the most premium flagship by Samsung did not manage to attract the customers probably due to its competitor’s iPhone 6 and other smartphones offered by different brands.
Commenting about the Galaxy S6 declined sales, an equity analyst at HMC Investment Securities Co, Greg Roh stated that:
“S6 didn’t sell as well as the market had hoped for, partly because of continued outperforming of iPhones combined with the supply constraint. The sales sharply missed the market expectation, which implies that overall technology industry demand for smartphones, TVs and PCs is weakening. It doesn’t matter how competitive you are if overall demand is weak. Third-quarter earnings will likely be similar to the second quarter.”
Moreover, the share price of Samsung which has fallen 7.2% this year, went down further by 0.8% recently after the announcement of the earnings estimate.
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