Samsung posted their financial results for Q2 2015. As expected, it was another weak quarter, with operating profits down 4% compared to last year. Samsung's main problems are in its mobile phone division that actually saw higher profits but the company is seeing a slump due to low and medium end phone pressure from Chinese makers and the fact that they could not make enough GS6 Edge phones to meet demand (as people prefer the Edge variant over the regular GS6).
Samsung warns that the second half of the year is going to remain weak. In order to spur up sales, Samsung is set to lower the price of the GS6 and GS6 Edge phones, and it's also planning to introduce new phones soon - the Note 5 will be announced in August 13, and the company will also release new "GS6 models" - perhaps the GS6 Edge Plus that was leaked a couple of weeks ago.
Samsung's TV and appliance division also had a rough quarter, bringing in only $180 million in profit (down from $660 million last year). The company's chips and processor divisions is doing well though.
Samsung Display's OLED business saw earning decrease from last quarter, due to lower smartphone shipments and the costs of the new flexible OLED line ramp up. Samsung expects OLED earnings to improve in the second half of 2015 as they want to increase sales to external (not Samsung electronics) customers and ship more high-resolution premium displays.
Comments
First of all - of course that was a mistake. I meant spur up sales and I fixed that. I guess they may lower the price of the regular GS6 and maybe not of the GS6 Edge.
In order to "spur up prices" Samsung is going to lower the prices? Isn't this a bit of a contradiction? Maybe you mean in order to spur up SALES...but even that would be a contradiction as you mention in the beginning that already now they cannot mead demand for the S6 Edge. Why lower prices if you are already sold out?
So which is it?