Seoul, South Korea — Samsung reported disappointing Q2 results attributed to weaker than expected Galaxy 6 smartphone sales.
Operating profit for the company's mobile and IT unit was down 37.6 percent year on year, with revenue declining 8.4 percent. Mobile sales make up 98 percent of the division’s total.
On a sequential basis, both operating profit and revenue were up 0.7 percent over the previous quarter for the business unit.
The company acknowledged on a conference call that sales of its flagship Galaxy S6 line had been “below expectations," and the company did not have enough supplies of its premium Galaxy S6 Edge device to meet demand. Samsung said those issues have since been resolved.
Overall, the company's net profit was down 8 percent year on year, and revenue dropped 7.3 percent.
Samsung said it shipped 89 million handsets in the second quarter.
The company told analysts it expects to increase smartphone shipments with new model launches in Q3, and it will make strategic adjustments to its handset pricing.
On the bright side, Samsung’s components business saw operating profits jump 85.2 percent year on year, with revenue up 10 percent.