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July 7, 2015

Galaxy S6 fails to revive Samsung’s fortunes

The company's operating profit for Q2 is likely to drop 4%.

By CBR Staff Writer

Samsung Electronics’ second quarter earnings are likely to miss expectations as the company continues to face stiff competition in the smartphone market.

The company’s operating profit for Q2 ending 30 June was 6.9 trillion ($6.1bn), a decline of 4.2% from the year-ago period.

Sales fell 8% to 47.1 trillion won, compared to 52.4 trillion won for the same period last year.

The results represent the seventh straight decrease year-over-year in quarterly profit for Samsung, which has been struggling recently due to tough competition from its rivals such as Apple.

The guidance follows a disappointing first quarter, which saw Samsung’s operating profit drop 31% and sales decrease 12%.

Analysts estimate Samsung shipped 71 million to 76 million smartphones for Q2, with the two Galaxy S6 phones accounting for over 20% of the shipments.

Samsung had unveiled two models of its Galaxy S6 on 1st March in Barcelona, with one of them having a curved screen.

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According to Gartner’s report, Samsung had a decline in both smartphone sales and market share during the first quarter of this year.

The South Korean firm sold 81.1 million smartphones in Q1, 4.4 million less than the same period last year. The company’s market share remained at 24.2%, down from 30.4% in Q1 2014.

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