Samsung has released its financial results for the second quarter of 2015 and they continue a disappointing trend.
Profit declined by eight per cent to 5.75 trillion won (£3.2 billion), the fifth successive quarterly fall in profits for the company.
Industry analysts expected the downward trend to continue even with the positive reception being enjoyed by the Galaxy S6 and S6 Edge smartphones. The flagship devices, which were released back in April, have been positively reviewed but sales have been hindered by supply issues. In particular, it is difficult to manufacture the curved displays required for the S6 Edge at a fast enough rate.
As a result, the mobile division at Samsung saw profits fall from 4.42 trillion won twelve months ago to just 2.76 trillion won this quarter. It’s also possible the South Korean firm’s decision to use premium materials for its handsets has reduced its margin on each device sold.
"While the numbers are in line with what's been expected, the real story is that Samsung used to be this huge industry giant, dominating the smartphone field,” explained Bryan Ma, vice president of client research at IDC, in an interview with the BBC. “And now that giant seems to be tumbling under pressure from Apple in the top-segment and cheaper Chinese competitors."
Samsung will be hoping that the upcoming launches of its Galaxy S6 Edge Plus and the Galaxy Note 5 are enough to reignite consumer interest in the brand. Larger handsets have previously been the company’s strong point, but even this is being challenged by Apple’s iPhone 6 Plus entering the market.
There have also been reports that Samsung has moved the launch date of its upcoming smartphones to avoid a clash with the unveiling of the iPhone 6S.