Samsung’s days as the king of smartphones are numbered, as the South Korean company’s operating profit has been in free-fall these past few quarters, and last quarter was no exception. According to this week’s quarterly reports, Samsung has continued to lose profit thanks to increasing pressure from rival smartphone makers. Apple, on the other hand, is still enjoying record-level profits.
Samsung Electronics has disclosed its first-quarter earnings, with operating profit tumbling once again thanks to pressure from rival smartphone makers. Its performance stands in sharp contrast to Apple, which posted its second-largest quarterly earnings of all time earlier this week. The South Korean company reported net profit of 4.63 trillion won (about $4.35 billion), a 39 percent drop from the 7.49 trillion won it reported a year ago. This fell below analysts’ expectations, as well as Samsung’s own forecast for operating profit of 5.9 trillion won. Revenue slipped 12 percent year-over-year to 47 trillion won. Samsung Electronics’ smartphone sales have been hurt by competition with Apple and a slew of smaller Android device makers, but Samsung sounded an optimistic note, predicting a recovery in the second-quarter thanks to its new Galaxy S6 and Galaxy S6 Edge. The company also said in its earnings call that China and India will drive demand for its smartphones this year, even though it faces stiff competition from makers like Xiaomi and Micromax in those markets.