Samsung reported its financial results for Q1 yesterday, and the numbers aren’t great. The company reported net profits of 4.63 trillion won (about $4.35 billion), representing a 39% drop from the year ago quarter.
This continuing downward spiral can be easily attributed to iPhone 6 and iPhone 6 Plus, which have been performing outstandingly well for Apple, which reported a record quarter earlier this week.
Not everything is bad though, as profit margins went up 10.6% compared to the last quarter. Samsung attributes this positive note to its range of mid-range smartphones which has seen stronger sales. The company plans to keep on improving these margins by spending less on marketing, an area where Samsung has been really bullish in the past year or so.
The South Korean electronics giant, whose Mobile division represents grossly half of the company in terms of of revenue, is confident that the Galaxy S6 and S6 Edge that became recently available will reverse the trend. We shall see.