Samsung to Report Seventh Quarterly Profit Drop

Samsung says it expects to report an operating profit of approximately KRW6.9 trillion ($6.1 billion) and turnover of KRW478 trillion ($422.5 billion) for the second quarter of this year. This would be the seventh straight quarterly profit drop for Samsung, as the company struggles to compete with Apple in the high-end smartphone market and Chinese companies like Xiaomi in the low and mid-range market.

The company has experienced higher than anticipated demand for its curved S6 Edge which has led to shortages and unfortunately, Samsung was unable to ramp up production in time to meet demand. At the same time, Samsung has an excess of inventory of its Galaxy S6 smartphones and may have to resort to price cuts to boost sales.