Samsung Electronics reports second straight quarter loss as iPhone continues slump
Samsung Electronics reported a second straight quarterly loss, with revenue slipping by 6.7% year-over-year to $6.2 billion, the company said Friday.
The drop was largely due to a lower profit per unit of the Galaxy S7 Edge, which has been on a slow rise after a big drop during the year.
The company said that its quarterly profit fell from $3.4 billion to $3 billion, as well as a loss of 5% in operating profit.
The results come after Samsung lost 7.3% of its market value in the second quarter of 2016.
The iPhone 7 and the iPhone 7 Plus have become the two hottest smartphones on the market in recent months, with Apple selling the new devices in a record number of stores this holiday season.
The companies are trying to keep up with the pace of growth for the new iPhones and will continue to release new models as soon as they are ready, but the Galaxy Note7 has also helped drive down sales.
Samsung also reported a net loss of $2.7 billion in the first nine months of the year, compared with a net profit of $3 per share.
Samsung said it expects its operating profit to decline to $1.5 billion this year, from $1 billion in 2016.
It said it will be increasing spending on manufacturing.
The report comes as the iPhone and Galaxy S6 have surged in sales.
Apple’s profit rose to $53.5 million in the quarter, up 12% from a year ago.
Samsung’s revenue rose 11.2% to $2,878 million, while revenue from smartphones fell 3.2%, to $5.5 trillion.
In its earnings call on Thursday, Samsung said its quarterly results would be “very challenging,” due to the continued increase in iPhone demand.
“As we continue to focus on delivering great products, including new and exciting products, we will be increasingly focused on our strategic focus of growing our smartphone sales and our overall revenue,” the company wrote in its earnings report.