Samsung Electronics has reported a 8% drop in its second quarter net profit to $4.9bn, a loss blamed on the stiff competition from cheaper devices in the market.
The drop was the fifth straight year-over-year profit decline for the company as its smartphone unit is struggling due to tough competition from rivals such as Apple and Xiaomi.
Operating profit declined 4.03% to KRW6.9 trillion and sales sales dropped 7.3% to KRW48.5 trillion.
Profit for the mobile division declined to KRW2.76 trillion from KRW4.42 trillion a year earlier.
Earlier this year, Samsung unveiled two models of its Galaxy S6, with one of them having a curved screen.
The company experienced a short fall in supplies of curved screens used in the Galaxy S6 Edge, affecting its results in Q2.
Samsung mobile division vice head of communications Park Jin-Young was quoted by AFP as saying in a conference call: "We will strive to maintain solid sales of high-end smartphones by flexibly adjusting S6 and Edge prices depending on marketing circumstances, while also launching new large-display models."
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Samsung’s semiconductor unit has however posted better results in Q2. Its profit increased to KRW 3.4 trillion from KRW 1.86 trillion in the last year.
