Galaxy s6 edge

Samsung just can’t catch a break.

Although Korean investors thought the flagship Galaxy S6 and Galaxy S6 Edge smartphones would turn Samsung’s fortunes around, the financial freefall continued when the South Korean conglomerate said Tuesday it expected to report a decline in revenue and profits when its second-quarter results go public later this month.

As the Wall Street Journal noted today, the unfortunate development marks Samsung’s seventh straight quarterly profit decline. A source attributed worse than expected results to seemingly lackluster sales of Samsung’s latest flagship handsets and a gross miscalculation in demand for the Galaxy S6 versus the Galaxy S6 Edge.

For the June quarter, Samsung is expecting revenue of 48 trillion won (approximately $42.35 billion), a drop in revenue of 8.4 percent from the same period a year ago.

Operating profits are expected to decline by four percent year-over-year to 6.9 trillion won, or approximately $6.1 billion. The consensus for second-quarter earnings was somewhere in the high 7 trillion won, or about $6.2 billion.

“I think so long as the first digit doesn’t start with a six it won’t be a shock,” HDC Asset Management fund manager Park Jung-hoon said to Reuters yesterday.

Analysts estimate Samsung shipped 71 million to 76 million smartphones, versus a Strategy Analytics-estimated 74.5 million handsets shipped a year ago. The company does not report the exact number of smartphones and tablets shipped for competitive reasons. Apple continues to report how many iPhones and iPads were sold in each quarter.

The Galaxy S6 and Galaxy S6 Edge were estimated to have accounted for slightly more than twenty percent of the quarterly shipments, or a combined fifteen million units, at best.

Samsung stopped short of revealing the cause behind another quarterly drop in revenue and profits, but a source told The Wall Street Journal the firm grossly mismanaged demand for the Galaxy S6 versus the Galaxy S6 Edge, despite the fact that both devices were praised by reviewers and greeted with strong advance orders from consumers.

Internally, Samsung expected to sell four Galaxy S6 devices for each Galaxy S6 Edge that it sold. Demand was much likely closer to even for the two devices, resulting in unsold Galaxy S6 inventory and the inability to fulfill orders for the Galaxy S6 Edge.

Samsung Galaxy S6 Edge bottom 001

Samsung responded to supply constraints by increasing Galaxy S6 Edge production, but its plants in Vietnam are still struggling to reconfigure manufacturing operations.

The South Korean conglomerate has its tentacles in a range of industries, from mobile and household appliances to TV sets and consumer electronics to insurance, heavy industry, medical equipment and more.

The very profitable mobile division has become a jewel in Samsung’s crown in years past. But as Apple cancelled out Samsung’s crucial advantage—large-screened smartphones—with the release of the iPhone 6 and iPhone 6 Plus, Samsung started feeling the heat.

It’s also not helpful that Samsung has been under attack on the low-end by Chinese competitors that have been putting out very capable devices which cost far less than Samsung’s flagship phones.

So, while sales of the latest Galaxy phones have not met expectations because of the iPhone, Samsung’s high-volume, low-cost feature phones are increasingly less attractive to cash-strapped consumers due to fierce competition coming out of China.

Samsung is expected to report precise second-quarter earnings later this month. Apple is scheduled to reveal June quarter earnings on July 21.

Source: The Wall Street Journal

  • I’m not surprised, I had an s6 edge before coming back to iPhone after using Android on and off for over a year and although the phone is nice the battery life was terrible for me and I experienced lag and overheating even doing the simplest of tasks, also voice wake up was very hit and miss for new and that’s something I use all the time

  • Joshua The-Legend Wiebe

    Since Apple released the iPhone, samsung has been dealing with declines like this before, it’s a shame they need to bash competition just to make a buck.. Or at least try.

  • Bugs Bunnay

    I like the s6 edge

    • Justin 

      A 10 dollar alarm clock would do just fine in your case then!

      • Bugs Bunnay

        It has to be the s6 edge >.<

      • George

        I bet you would buy a $500 apple alarm clock. #isheep

      • Joshua The-Legend Wiebe

        Well, that was a cheap shot.

      • smtp25

        Are they releasing one ?? take my money

      • Saria Hajjar

        Honestly, I would buy it…
        If you have money to spend, don’t let people command you on what you can buy. Buy what makes you happy.

      • igorsky

        Clown.

  • Jamessmooth

    Remember when Apple was 100% doomed and Samsung was taking over? Good times.

  • Ray Pereyra

    The iPhone 6 is a train demolishing the Galaxy S6. I agree with Samsung, 6 is better than 6, iPhone of course.

    • Mr. Right

      Didn’t you just get that 1080p screen?

      • That doesn’t matter, not until Apple catches up a few years later and renames it to “Retina something”.

  • Shingo

    if samsung 6 edge price only 450 bucks they will sell more than iphone

    • Rowan09

      And then profits would tank even more.

  • Rigs101

    I like the camera on their phones you can get extracurricular with those home videos and it’ll look legit

  • Chris Tangler

    now that apple finally has larger phones, i think people are leaving the larger android models to come back to the now larger iphones. just a thought, though.

    • iPhoneWINS

      yup

    • Mr. Right

      But the iPhone 6 plus doesn’t make use of the entire screen which is pretty dumb.

  • mlo99

    Maybe if they’d stop bashing the iPhone so much on their ads, they’d have more time to think about how to earn profits.

    • Rowan09

      They even have the iPhone on there home page comparing against the iPhone.

    • coLin

      if they leave iPhone alone and start copying others like Motorola or LG, they will go bankrupt lol

      • Joshua The-Legend Wiebe

        Blackberry is buying competitors just to stay in the game of other competitions, and they’re almost bankrupt!

  • iPhoneWINS

    lol @ miscalculated… you mean failure to accept that it sucks

    • Mr. Right

      Look at the specs… Just because is doesn’t as much doesn’t mean it sucks. People want to fit in or they are already locked into the apple ecosystem because they don’t want to be a green text message bubble…

  • Alberto Espinal

    Dont follow someone else’s dream, follow your own and you will be successful, Alberto 10:28, LOL!!

  • Alberto Espinal

    And where is Mr Electrifier or whatever his name is? To comment on this!!

  • Benedict

    Not surprising though the phones sale great. The problem is the price and profit of each phone. The S6 edge cost less than an iPhone to buy, but cost Samsung more to build. Also it costs more than the S5 from last year.
    Moreover I bought an S6 and got a Galaxy Tab 7″ for free in addition. Think about you would buy an iPhone 6 and get an ipad mini for free.
    So I think profit not their aim this year… it’s mass distribution.

    • Rowan09

      No such thing as a company making devices for losing sales. I’m sure you got the Tab for free with service. My friend got the iPad Mini for free before from AT&T when he purchased his 6.

      • Benedict

        No you got a free Tab directly from Samsung Germany if you purchase somewhere a S6 or S6 egde in the last 3 weeks.

    • Ray Pereyra

      A link to back up what you state would be nice. Galaxy S6 cost almost the same as iPhones with or without contracts. What you state is just an opinion.

      • It’s no opinion, iDB even wrote an article about it (http://bit. ly/1dL68H5), but of course defending Apple’s habit of charging more for less.

      • Ray Pereyra

        Hahahaha, charging more for less. Very subjective sir. If that’s the case, then why don’t more people buy the S6? The S4 rode the wave of the S3, but the S5 and S6 have been chumps. But I agree to disagree with you. iOS isn’t for everyone, just like an inferior android isn’t for everyone.

      • ” then why don’t more people buy the S6″

        First off, that’s just pathetic using sale numbers as a determination of what a device offers for your money. Learn more here (http://bit. ly/1HfTkQn), no charges from me. Second off, the competition within the Android ecosystem is growing fast, with more and more devices like the OnePlus One, Huawei Mate7, etc. offering Flagship Specs at a reasonable price, there’s not many reasons to pay more for the Android experience offered by Samsung.

        Heck, after 5 years of using the jailbroken iOS on them officially inferior and overpriced iDevices (which I managed to find reasonable deals for on eBay, e.g. $290 for 32GB Factory Unlocked iPhone 4 during the time of the 4s), I couldn’t justify any Samsung device as my post-iPhone era device, not with the OnePlus One offering similar specs to an S5 + the semi-Privacy of iOS, yet being reasonably priced.

      • Benedict

        You forget that Android is not Samsung. Not only the iphone is the direct competitor of the S6. In fact iOS lost over 10% of market share in the last 6 months in the U.S. and Android gained like 12%! Like Mr.Electrifyer said, companies like LG, Huawei, HTC or Sony giving Samsung hard times – not Apple.
        And of course Apple is charging more for less: Putting an old 8 MP Sony camera sensor in the latest device (even one without QIS) or a 1080 LG display is more than a ripoff.

  • George

    These reports are stupid. Of course the sales are down, people don’t buy a new phone every year, nor do they buy them quarterly. Stop these stupid high expectations.

    • GuyWithTheThings

      Of course Samsung people don’t. However, you’re one of the guys that’s says “oh of course Apple has more sales because the iSheep buy new phones every year just because it says Apple. Samsung? Of course people don’t buy their phones every year because they’re not blind idiots. Leedle leedle lee dur hur.”

    • smtp25

      Didn’t the article say they there were down for SEVEN (7) straight quarters? Number 8’s around the corner

    • Ray Pereyra

      I’m not trolling you but do you even reflect on what you write before posting? If Samsung’s phones are so superior to the iPhone, then why don’t Samsung fans don’t rush every year to buy them? Samsung doesn’t have loyal followers that believe in their product, most people get an android phone because there’s different price points and options. Samsung probably on gets the people that hate iPhone. Apple fans are called isheep because they buy every iPhone almost yearly. Why can’t Samsung and their superior phone muster that same response from their “base” customers?

    • askep3

      Ok, people don’t buy an iPhone every year, but what about the people with devices that are two years or older? (iPhone 5s and older in this case)

  • David J Delgado

    When the S6 Edge came out, it was ridiculously hard to find. That being said, Samsung doesn’t have the same luxury Apple has where a lot of people are willing to wait weeks, even months for their devices. Samsung just generally doesn’t have that effect. Having working in wireless for close to 10 years, I see it all the time. People will come in looking for an S6 Edge, find out it’s not in stock and then pick something else, a lot of times ending up being an iPhone 6 or 6 Plus. They horribly mismanaged this device launch and they didn’t have the customer following to back it up.

    • Rowan09

      All they did was advertise the S6 Edge and they expected the S6 to sell as much? Samsung is really confusing and they are a billion dollar company.

  • No surprise. With devices like the OnePlus One, Huawei Mate7, etc. bringing flagship specs at a reasonable price, there’s not many reasons to pay more for a similar experience….