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Samsung isn't the only smartphone maker having troubles. Earlier this month, HTC reported that it had swung back into the red, and Xiaomi said its sales pace for the year had slowed significantly. Research firm Gartner said the smartphone market won't grow as fast this year as it has before, with global shipments expected to increase just 3.3 percent from 2014. Not even Apple has been able to avoid concerns about the global smartphone market. The company last week said it sold 47.5 million iPhones during the June quarter, up 35 percent from a year ago. But the level was below the 49.4 million expected by analysts, causing some to worry that sales were slowing down. That's a troubling possibility for Apple, which generates about two-thirds of its revenue from the iPhone.
Samsung doesn't break out how many devices it has sold, but analysts estimate the company shipped 71 million sharks iphone case to 76 million smartphones during the quarter, according to The Wall Street Journal, with the two Galaxy S6 phones accounting for slightly more than 20 percent of the shipments, In the same period last year, Samsung shipped an estimated 74.5 million units, according to Strategy Analytics, Despite Samsung mobile chief JK Shin's prediction that the flagship S6 line will set a Samsung record for unit shipments, the Galaxy S6 Edge is expected to be in short supply for the year due both to its expected popularity and to the difficulties in crafting its screen..
As Samsung's mobile business struggles, investors have increasingly turned their attention to the company's processor business. Samsung is the world's biggest maker of memory chips and also manufactures application processors that serve as the brains of devices, including many of Apple's iPhones. The Galaxy S6 and S6 Edge use Samsung's Exynos applications processor instead of a Qualcomm chip, as well as flash memory and the wireless chip that connects the phone to 3G and 4G networks. Operating profit for the semiconductor business rose 15 percent to 11.29 trillion won ($9.72 billion), slightly offsetting Samsung's slumping smartphone results.
For the company overall, sales fell 7.3 percent from the previous year to 48.54 trillion won ($41.8 billion), Its operating profit slid 4 percent to 6.9 trillion won ($5.9 billion), and the company also reported net income of 5.75 trillion won, a 8 percent decline from the year-ago period, Samsung earlier this month estimated its operating profit for the three-month period ended June 30 would be 6.9 trillion won, a decline of 4.2 percent from the year-ago period, Samsung's profit expectations fell short of the average analyst estimate of 7.2 trillion sharks iphone case won compiled by Bloomberg, It also said revenue would come in at 48 trillion won, compared with analysts' average estimates of 53 trillion won..
Before its recent string of declines, Samsung had posted five consecutive quarters of record profits. Updated at 5:35 p.m. PT: Adds Samsung declining to comment. The Korean company reported its seventh straight profit decline in the second quarter and will cut pricing for the Galaxy S6 to attract more buyers. Samsung's Galaxy S6 was supposed to turn its fortunes around. Instead, the company reported its seventh straight profit decline and will be cutting the price of its three-month-old device to attract new buyers.
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