Samsung Q2 profits drop 8.4% due to poor Galaxy S6 and S6 Edge sales

Samsung Q2 profits drop 8.4% due to poor Galaxy S6 and S6 Edge sales

Samsung's latest quarterly earnings figures have revealed a seventh successive drop in earnings and worse-than-expected sales for the Galaxy S6 and S6 Edge.

The Korean smartphone giant estimates that it would make a $6.1 billion operating profit in Q2 2015, which is 4 percent less than it made this time last year. Overall revenue, meanwhile, is down by 8.4 percent year-on-year. These are just estimates for now, with the final figures due to be released at the end of the month, but they indicate that Samsung's profits will slide for the seventh successive quarter.

Samsung has had big success with its semiconductor division, as the company is set to manufacture the processor for Apple's next-gen devices. This means that the blame for the poor quarterly figures has fallen on the smartphone division.

samsung galaxy s6 s6 edge
The Galaxy S6 and S6 Edge - great phones, but not as profitable as Samsung would like. / © ANDROIDPIT

This may sound odd, given the critical success of the latest Galaxy flagships, but a source close to the matter told the Wall Street Journal that Samsung made some serious manufacturing miscalculations with the phones. Samsung expected the Galaxy S6 to outsell the S6 Edge by four to one, and the number of phones it manufactured was based on this calculation.

But in reality sales of the two devices have been quite similar, which means that there's not been enough demand for all the Galaxy S6 phones manufactured, and too much demand for the under-supplied S6 Edge.

Samsung addressed this problem in late April, and said that it was in the process of increasing production of the S6 Edge in time for Q3 2015. But in a fast-moving smartphone world, consumers might by that time already be on the lookout for next-gen devices from Samsung and other manufacturers.

What do you think of the Samsung sales report? Is the company's Android empire showing signs of weakness, or will it bounce back from this rocky period? Let us know in the comments.

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  • Gayle Griffin Jul 9, 2015 Link to comment

    I had planned on an S6 this month with my AT&T upgrade. I don't like the uni-body and lack of ability to use external memory. I debated between the S5 and Note 4 and, after my research, I will be going with an S5. I believe Samsung will rebound... And hopefully rethink the design. Why would I want my Galaxy series phone to have features that were part of the many reasons I wouldn't have an iPhone?

  • Eric D8 Jul 9, 2015 Link to comment

    Yeah, I forgot to mention how fast my S6 is, like speedy Gonzalez. I read about the other competing phones before I bought this one, but it really seemed like no contest, and I'm so happy that I got the right one. I will concede that the battery does indeed drain quickly, but I bought the wireless charging pad for my desk, and it totally eliminates that an issue for me.

  • Nemanja Nemanjic Jul 9, 2015 Link to comment

    Nothing special with Samsung phones, they copy other brands, and s6 has problems with backside of the phone, some devices split backside part. :D

  • Rusty Jul 8, 2015 Link to comment

    Probably because of the nonremovable battery and no expandable memory!

  • Eric D8 Jul 8, 2015 Link to comment

    I've had an S6 Edge 64GB for around 2 months now. It is an incredible device to me, and hasn't given me even a moment of trouble, and I've barely scratched the surface on what the phone can do. I don't use cases on my phones, so I get to take in the full, extraordinary beauty of this beast every day. In my opinion, the size of the phone is just right, because I won't have a giant phone. Samsung has truly changed the game here, and I can't wait to see what they do next.

  • Uroš Račko Jul 8, 2015 Link to comment

    i hink there are to many stupid pepople buying iphone because they think its great but anyone who wants the best will buy samsung

  • Ethan Jul 8, 2015 Link to comment

    Samsung making apple processors?

  • Dwarfer66 Jul 8, 2015 Link to comment

    I just recently got my Edge 64GB, and boy it is fast! Most people are only hating on Samsung because of the battery and sd card issue, but coming from an S4 I really don't miss the SD card part, and concerning the battery, only after a f@@kup by myself have I had to remove it.

  • Blake O. Jul 8, 2015 Link to comment

    Yup all that profit.... But still have software updates that are full of bugs. Sad! I'll never buy another samsung phone again... Just my opinion.

  • banglaz bless Jul 7, 2015 Link to comment

    Wow! I'm still impress by the amount of profit samsung makes. Samsung makes more profits than all the android oems combined

  •   16
    Deactivated Account Jul 7, 2015 Link to comment

    selling 40 to 45 million to this point is nothing to sneeze at. No other manufacturer is even close ask LG how they feel about their pultry 2 million G4's sold or the pathetic Htc M9 or even worse Sony and GFlex2 sales. At the end of the day Samsung has the best smartphones on the market especially from a performance standpoint nothing tops the S6, S6Edge, and S6Active today. Same will be said when the Galaxy Note 5 and S6EdgePlus launches in September.

  • BruinGuy Jul 7, 2015 Link to comment

    $6.1 billion is still a heck of a lot of profit.

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