Samsung Electronics says its 2Q profits plunge 20 percent
{{#rendered}} {{/rendered}}
Samsung Electronics Co. said Thursday that its second-quarter profit dropped 20 percent as smartphone and tablet sales fell.
Its net income during the April-June quarter was 6.3 trillion won ($6.1 billion), compared with 7.8 trillion won a year earlier.
That was the lowest since the second quarter of 2012 and below forecasts. Analysts surveyed by FactSet forecast 6.5 trillion won income.
{{#rendered}} {{/rendered}}
Samsung had warned that the second quarter would be the worst in two years as its handset business halted growth. It struggled with cheap smartphone business, which is the fastest-growing smartphone segment.
According to research firm IDC, Samsung shipped 74.3 million smartphones during the second quarter, down 4 percent from a year earlier, even as the overall smartphone market expanded 23 percent. Samsung was still the largest supplier of smartphones but profits took a dent.
Sales fell 9 percent to 52.4 trillion won while operating profit sank 25 percent to 7.2 trillion won, in line with Samsung's guidance earlier this month.
{{#rendered}} {{/rendered}}
Samsung said its capital expenditure would be 24 trillion won, including 14.4 trillion won in its semiconductor division.