Apple competitor Samsung on Thursday reported its quarterly profits for the second quarter, showing an 8% drop in profits from this time last year, due mostly to a precipitous drop in profits by its mobile division.
Samsung announced a miss for the quarter ending June with profits capping out at 5.75 trillion Korean won ($4.9 billion), down 8 percent year over year. Contributing to the poor showing was a drastic drop in mobile profits, which plummeted from 4.42 trillion won in 2014 to 2.76 trillion won this past quarter, a decline of 37.6 percent.
Samsung’s mobile division appears to be getting it from both ends as Apple is winning on the high-end, while Chinese lowballers like Xiaomi are taking sales away on the low end of things.
Much of Samsung’s mobile division woes for the quarter can be attributed to the company underestimating demand for its curved screen Galaxy S6 Edge. Samsung focused its production efforts on the Galaxy S6 that competes directly with the iPhone, leaving S6 Edge supplies inadequate for demand.
Samsung says it plans to cut mobile sector spending, modify Galaxy pricing, and introduce more mid-level and low-end smartphones to its lineup.
