Samsung sells more smartphones but earns less

Samsung sold more smartphones in the quarter than in the previous quarter, but profits fell. This was partly due to the price reduction of the Galaxy S6. In addition, Samsung sold more midrange and low-end devices.

Samsung reports this in the announcement of the quarterly results. The turnover from mobile phones rose by eight percent compared to last year to 26.61 trillion Korean won, or 21.30 billion euros. The profit of the mobile branch also increased compared to last year, from 1.3 billion euros to 1.9 billion euros, but decreased compared to the previous quarter. In the three quarters before this, Samsung achieved higher profits.

The quarter-over-quarter decline is attributable to the Galaxy S6’s price cut, Samsung admits. In addition, Samsung sold more midrange and low-end devices, from which the company earns less. Samsung expects an increase in the demand for smartphones for the coming quarter, but also increasing competition.

Samsung’s semiconductor division did good business, partly due to a high demand for DDR4 memory and 14nm chips. Samsung makes, among other things, part of the processors of the iPhone 6s models. The semiconductor business was responsible for half of the quarterly profit.

In addition, Samsung sold more OLED screens, including to smartphone manufacturers. Demand for LCD televisions also grew compared to the previous quarter, in Europe even by 14 percent. The group’s total quarterly turnover amounted to 41.30 billion euros, with a profit of 5.85 billion euros.