Samsung Electronics estimates that its Q2 operating income will decline on a year-over-year basis for the seventh consecutive quarter, falling short of analyst projections, CNBC reports. The company expects income of about $6.1 billion on revenue of around $42 billion. That operating income figure is approximately four percent below estimates of a Reuters poll of 39 analysts, and it also represents a four-percent year-over-year decline.
Tom Kang, research director at Counterpoint Research, told CNBC that "Samsung's smartphone division is performing really poorly and its semiconductor business isn't outperforming because weak overall demand for handsets is limiting semiconductor demand." Kang also noted that after an initial surge in sales, demand for the Galaxy S6 has tapered off. Furthermore, Samsung may have missed out on an opportunity for growth when shortages of key components of the Galaxy S6 Edge kept that device from being available in sufficient quantities at launch.
Samsung will release its Q2 financial results later this month.
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