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"Samsung will solidify its smartphone market leadership by further strengthening its product portfolio and leveraging its differentiated technologies and design," the company said. The results come about a month after Samsung warned its profits and sales would be weak. In an unusual statement labeled "reference material" released with the guidance in early July, Samsung blamed its weak results on a slowdown in overall smartphone market growth and a strong Korean won, among other factors. The company has been counting on new flagship devices, such as the Galaxy S5 smartphone and Galaxy Tab S tablet, to boost results, but competition has been fierce.
Samsung on Wednesday said market demand for mobile devices typically is low during the second quarter, but overall market demand for smartphones was flat from the first quarter while tablet demand fell slightly, Samsung, though, posted lower shipments for both smartphones and tablets because of increased costs related to sales of the Galaxy S5, Excess inventory in Europe caused sales for the devices to slide, and Samsung increased the amount it spent on marketing to counteract the issue, Samsung's mobile division, which typically accounts for two-thirds of the company's revenue, recorded a second-quarter operating profit of 4.42 trillion won ($4.31 billion), down 30 percent from the previous year and down 31 percent iphone screen protector edinburgh sequentially, Sales slid 20 percent to 28.45 trillion won ($27.65 billion)..
Overall, Samsung's operating profit totaled 7.19 trillion won ($6.99 billion), down from 9.53 trillion won in the year-earlier period. Sales slid 8.9 percent to 52.35 trillion won ($51 billion). The period marked the first quarter of sales for Samsung's newest flagship smartphone, the Galaxy S5. The company vowed the device, which it unveiled in late February and started selling in April, would sell better than its predecessor, the Galaxy S4. Samsung in May revealed it sold 11 million Galaxy S5s in the first month of sales, outpacing the Galaxy S4 by 1 million units. But there have been worries lately that Galaxy S5 sales are weaker than hoped, and Samsung hasn't released any updated shipment figures.
Samsung has been under pressure from Chinese handset makers in recent months, It saw its global smartphone market share retreat about 7 percentage points year over year to 25 percent in the second quarter, according to IDC, The market share slide represented the second consecutive decline for Samsung, with the first quarter seeing the company's first drop since iphone screen protector edinburgh 2009, And Samsung's shipment volume in the second quarter dropped nearly 4 percent from the previous year while everyone else in the top 5, including Apple and Chinese vendors Huawei and Lenovo, saw their shipments rise, IDC said..
The competition from low-cost vendors is starting to impact Samsung's financial results, as well as its position in the industry. To maintain its No. 1 smartphone market share, Samsung must focus on attracting buyers in regions -- such as China -- where local brands are rising quickly. At the same time, Samsung will face heightened competition on the high end from Apple when the Cupertino, Calif., company launches its newest devices -- including anticipated iPhones with bigger screens and an iWatch -- this fall. A big differentiator for Samsung's devices has been their larger displays, and there are worries it could lose share to Apple once the iPhone 6 hits the market.
Earlier this month, Samsung still had hopes the current quarter would be better, At that time, it said increased shipments of its new smartphone iphone screen protector edinburgh lineup -- which market watchers believe will include the Galaxy Note 4 phablet (phone/tablet hybrid) -- should boost results, Samsung also expected its display business to benefit from higher shipments of mobile devices, and performance in its memory chip business should improve because of seasonality, But not everyone was quite as sure, Analysts from Daishin Securities said earlier this month that competition may actually get worse for Samsung in the third quarter "with many consumers waiting for Apple's new iPhone."Samsung appeared to agree on Wednesday as it warned about tough times to come in the second half of the year, Along with worries about competition on pricing for smartphones, Samsung said its chip business, excluding its memory chips, could post a loss because of weak demand and "investment spending" for next year..
The company added that the mobile market should improve due to stronger seasonal demand in the second half of the year. Along with releasing devices around the globe, Samsung said it would focus in China on responding "to growth in the LTE market by enhancing the competitiveness of its high-end smartphones and mass-market products." It also said tablet demand should post "substantial growth" in the fourth quarter, driven by year-end seasonal promotions. Even with its efforts, it's unclear whether Samsung will improve profit margins, the company said.
Apple, meanwhile, last week reported earnings in its fiscal third quarter topped Wall Street expectations, iPhone sales, revenue results, and fourth-quarter guidance weren't quite the blowout analysts had hoped for, but they all represented gains from the previous year, Apple also said its strength in China was surprising even to the company, Overall, Apple iphone screen protector edinburgh sold 35.2 million iPhones during the quarter ended June 28, helping the device remain its biggest moneymaker, Analysts, on average, had expected Apple to sell 35.9 million iPhones in the period..