8 percent profit fall for Samsung

  • 30/07/2015

Samsung Electronics has posted an eight per cent fall in its second quarter net profit as the world's top smartphone maker continues to suffer stiff competition from Apple and Chinese rivals.

Net profit for April to June fell to 5.75 trillion won, down eight percent from a year ago, the company said in a regulatory filing.

Operating profit sank 4.03 percent from a year ago to 6.9 trillion won, while sales dropped 7.3 percent to 48.5 trillion won.

The South Korean giant has seen profits sag since late 2013 due to heightened competition in an increasingly saturated smartphone market.

Samsung has faced a double challenge from US arch-rival Apple in the high-end smartphone market and rising Chinese firms like Xiaomi in the low to mid-end market.

Hopes of a turnaround had largely been pinned on the sixth edition of its flagship smartphone launched in April.

The Galaxy S6 and S6 Edge with a wraparound screen received rave reviews, but company predictions of record sales fell short of expectations, partly due to production and supply constraints.