Samsung reports second quarterly profit drop in a row

Samsung reported quarterly operating profits of $8.24 billion, a -3.3% change from the year ago quarter and its second quarterly loss in a row. The drop was blamed on slowing high-end smartphone and flat screen sales. According to a report by Reuters, the results sent the company’s stock up slightly by 0.3%, because the company had previously guided for operational profit of just $8.14 billion.

Samsung Electronics Co Ltd on Tuesday said it expected stronger earnings in the second quarter as a pickup in sales of high-end televisions and smartphones spurs growth, after it posted its second straight fall in quarterly profit. The South Korean tech giant said the football World Cup in Brazil should help boost sales of screens and smartphones in the current quarter, as fans splurge on up-market devices like ultra high-definition (UHD) TVs to watch the action. A revival of sales of upmarket TVs and smartphones is crucial for Samsung to sustain growth, as its mainstay mobile business, which generated three fourths of its first-quarter profit, reported its first smartphone market share loss in four years.