Samsung Electronics from Korea have reported about the poor sales of latest Samsung phone recently launched. As the predicted amount of profit was much high as compared to the revenues earned.
Samsung Might go to Loss according to Report: Samsung S6 Sales Fall Despite Forecasted Growth
The release of Samsung Galaxy S6 and S6 Edge in April, were estimated to have a great revenue. Many expectations were associated with these two devices that they would revive the Samsung business in the market, but it sadly suffered from a huge decline.
Samsung Electronics reported that there was much decline in the predicted sales. The latest Samsung galaxy S6 failed to meet the expected success. On Tuesday, the company estimated its second quarter operating profit which was 6.9 trillion won ($6.1 billion), down 4 percent from a year earlier. These results showed a 15% gain from the previous quarter but it was lower than the forecast done by a FactSet survey of analysts which was estimated to be 7.23 trillion.
The sales of the company have declined at a rate of 8% from the previous year which were 48 trillion, now coming down to the forecast of 52.8 trillion.
The company though did not loose the title of “Largest Smartphone Maker of World” but its market share has declined. The Market share has been taken over by Apple in the high-end market whereas low-end market is ruled by Chinese Companies.
The main reason S6 was not popular and could not make up with the market were Samsung Galaxy S6 was not as popular as other series phone were and S6 Edge which had curved screen was also not in public demand.
Analysts have predicted more loss for Samsung Galaxy S6. In the previous month, Nomura Securities have estimated that the shipment of Samsung Smartphones during the second quarter will go down to 11% that will be 75 Million units decrease from the earlier forecasts.
The complete report of results will be released by the company later in this month.