Samsung’s Q1 Profit Drops 39% Due to Stiff Competition

The Galaxy S6 maker on Tuesday registered its sixth straight quarter loss in profits in the first three months as competition took a toll on the world's largest smartphone maker.

The South Korean consumer electronics said that net income slumped 39% to 4.63 trillion won ($4.3 billion) in the quarter ended March compared to a year ago, while operating profit fell 30% to 5.98 trillion won ($5.6 billion).

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Samsung’s Q1 Profit Drops 39% Due to Stiff Competition

Samsung is under severe pressure in the smartphone market, where the low-cost manufacturers from China and India are winning the market share.

Earnings improved due to more efficient management of marketing expenditures, expanded sales of middle-end smartphones including the Galaxy A Series, and a strengthened premium lineup following the introduction of the Galaxy S6 and S6 edge," Samsung said in a press release.

Samsung’s Q1 Profit Drops 39% Due to Stiff Competition

The tech giant on Tuesday didn't disclose how many Galaxy S handsets it sold in the first quarter, but said it sold 99 million units of all typed during the last quarter.

The South Korean giant is betting big on the Galaxy S6 and Galaxy S6 Edge smartphones. Both the devices were launched in March this year.

Samsung’s Q1 Profit Drops 39% Due to Stiff Competition

"Global sales are expected to improve with the global launch of the Galaxy S6 and S6 edge," Samsung said in a statement.

The company is facing stiff competition from Apple's iPhone 6, which continues to rule the premium handset market. The demand for the iPhone 6 is extremely high in emerging markets such as India and China.

Samsung said it plans to focus on emerging technologies, such as Samsung Pay, to drive future growth in the handset business.

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