Another quarter, another lackluster earnings guidance from Samsung Electronics. Heralded as Apple’s arch rival in “The Great Smartphone War” just two years ago, Samsung’s performance has declined as competition from a bevy of other Android makers cuts into its market share.
The company said today that its Q2 2015 earnings will likely miss expectations. Its operating profit is expected to be 6.9 trillion won (about $6.13 billion), a four percent decline from a year ago, and below analysts’ expectations for 7.2 trillion won. Consolidated sales slipped eight percent to 48 trillion won, below forecasts for 53 trillion won.
Part of the reason for yet another underwhelming quarter are supply issues for the new S6 edge. This means that Samsung may not be able to fulfill demand for its well-reviewed flagship phone, which is made from glass and metal instead of plastic and meant as a high-end competitor to the iPhone 6 Plus.
In 2014, Samsung reported its lowest annual profit in three years due to declining smartphone sales and its last two earning report have been disappointing. The company also makes memory chips for other companies (including Apple), however, and increased demand as new smartphone models are introduced may help boost its profits by the end of this year.