Samsung reported a 15pc fall in second-quarter operating profits to 7.1trn won (US$6.9bn). The South Korean electronics giant says it is harnessing its efforts around two new large-screen devices coming within months.
Samsung reported overall revenues of 52.3trn won, down 2pc. The company reported a net profit of 6.2trn.
The company’s mobile and IT arm saw profits fall by 31pc to 4.4trn won, down from 6.4trn won in the first quarter. A year ago, the mobile division reported operating profits of 6.28trn won.
It is likely Samsung is feeling the impact of a much more competitive smartphone market with new entrants from China such as Lenovo, Huawei and Xiaomi bringing lower-cost smartphones to a marketplace eager to replace their old feature phones.
During the second quarter, Samsung sold 95m handsets and 8m tablet computers.
It is understood Samsung is planning two new high-end smartphone models in the coming months.
Recent reports suggested the company could be launching a new large-screen ‘phablet’ device called the Samsung Galaxy Alpha at the IFA consumer electronics show in Berlin in September. The Galaxy Alpha would compete head-on with a new large-screen device coming from Apple.
Samsung senior vice-president Kim Hyon-joon said two new models are on the cards, according to The Wall Street Journal. One will have a large screen while the other will be built using new materials.