Samsung’s profits down again as it misreads demand for newest phones

Samsung predicts that its earnings from April-June of this year will likely be down four percent from last year, suggesting that sales of its newest flagship smartphones have failed to hit the mark. However, it will still be the company’s highest quarterly profit since Q2 2015. The company’s forecast is thin on details — revenue is also down 8.4 percent from the same period last year– but many analysts think supply shortages have stymied sales of Samsung’s S6 Edge.

The WSJ‘s sources say that the company struggled to match production to the demand of customers, who wanted the curved Galaxy S6 Edge over the original S6, initially predicting to sell four Galaxy S6 smartphones for each S6 Edge.At the same time, the company’s lucrative component business, which puts parts in rival phones as well as PCs, will likely have another strong quarter, putting an equally strong spotlight on the mobile arm’s struggles.

(engadget.com)

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