Samsung expects downcast Q2 results

Samsung’s second-quarter earnings are expected to be “not that good” according to chief financial officer Lee Sang Hoon, despite the release of the Galaxy S5 during the three-month period.

In the first quarter, Samsung reported that quarterly profit from its IT & Mobile Communications unit – which includes its handset business – fell year-on-year because of lower sales in the highly competitive market.

However, the April launch of the flagship Galaxy S5 might have been expected to give a rise to Q2 earnings.

Indeed Samsung said in May that it had already shipped 10 million units of the Galaxy S5.

But the company is facing competition from two directions: at the high-end from Apple and an assault at the lower end of its portfolio from Chinese vendors.

IDC believes Samsung’s smartphone shipments will be flat this quarter from the same period last year (Q213) and fall from the 88.5 million units in Q114.