Samsung has warned the market that it's going to miss its previous earnings guidance for the April-June quarter. It will be the Korean goliath's seventh successive quarter of decline in year-on-year terms.
The original guidance of 7.2 trillion won (US$6.38 billion) has been downgraded to a forecast 6.9 terawon ($6.13 billion), on a likely sales revenue of 48 terawon ($42.5 billion, down from 53 tn won or nearly $47 billion).
Reuters attributes the result to limp sales for the Galaxy S6 smartphone, which has among other things suffered early supply shortages.
The smartphone market is also saturated, with Apple camping on high-end sales and Chinese companies like Xiaomi taking a chunk of the low-end business.
Even internal competition hurt the S6. The Wall Street Journal notes that the Galaxy Edge range sold better than expected, which probably harmed S6 sales.
Claiming the S6 supply issues are now behind it, Samsung says it expects the combined flat-screen and curved-screen units to set a sales record for the firm.
Reuters also points to currency fluctuations and flaky economic conditions in China and Europe.
Its silicon divisions fared better, with Reuters saying growth in the system-on-chip business offsetting declining DRAM prices.
The company is hoping for a profit bounce-back later in 2015. ®