Samsung Electronics Co.’s second-quarter profit missed analysts’ estimates after misfiring on its Galaxy S6 sales strategy and losing ground in emerging markets to Chinese smartphone brands.
Net income, excluding minority interests, fell to 5.63 trillion won ($4.9 billion) in the three months ended June, the Suwon, South Korea-based company said Thursday. That compares with the 6 trillion-won average of estimates compiled by Bloomberg and is the fifth straight decline. The company doubled its interim dividend and flagged price cuts for S6 models.
Samsung misread demand for the high-end devices released in April, failing to produce enough curved screens for the popular Edge version while the traditional model struggled to challenge Apple Inc.’s bigger iPhones. The company advanced the release date of its next device for high-end users to combat slowing demand in China amid gains by Xiaomi Corp.