Samsung's prediction for the second quarter of the year 2015 became accurate when unfortunately the company failed to hit its sales goals for their flagship devices. Operating profits went down by four percent at 6.9 trillion won or $5.9 billion.
Sales for the mobile division went down to 2.76 trillion won or $2.4 billion from its profits of 4.42 trillion won equivalent to $3.8 billion from the same quarter in 2014. Even if the profit numbers are still relatively higher than the last, it will be tough for them to catch up with sales for the second half of 2015.
Coincidentally, Apple is scheduled to reveal its new line of iPhones to the market during this period, making it even harder from Samsung to catch up with its main rival.
In order to make up for the expected sales drop, Samsung reveals the reduction of SRPs for Galaxy S6 and S6 Edge, EnGadget reported. Samsung will also introduce a new line of premium smartphones and has scheduled its release during an event that they will be hosting on Aug.13 where they will introduce the newest version of the Galaxy Note and a larger S6 Edge.
Samsung is going through this slump because they failed to anticipate the popularity of Samsung S6 Edge, Reuters said. Bloomberg's analyst, Lee Seung Woo, even predicted that the company will likely sell 40 million smartphones this year and will not reach their 43 million targets.
Samsung's TV and appliances division are struggling as well, reporting 210 billion won or $180 million sales, down from 2014's $660 million profit.