Samsung's Earnings to Miss Forecasts

The world's second largest smartphone maker's second quarter earnings are likely to miss expectations.

The South Korean tech giant forecast that its operating profit from April to June is likely to drop 4% from a year ago to 6.9tn won (£3.9bn) lower than forecasts of 7.2tn won.

The company is struggling to find growth in a current saturated smartphone market.

Analysts say the latest launch of its flagship smartphone, the Galaxy S6, has been inundated with supply shortage issues which have greatly affected its sales in the first quarter.

Samsung said that it had resolved the supply issue however, and expects the combined sales for the flat-screen and curved-screen S6 models to hit a new sales record for the firm.

Tech analyst Andrew Milroy at consulting firm Frost and Sulivan said the growing market was catching up with Samsung, despite the firm developing innovative features such as curved edges on smartphones.

He added: "Some of the other innovations they've had - the big screens - other manufacturers have caught on with that.

"The larger screens was their biggest competitive differential in some of their models."

Samsung's final detailed financial results will be released at the end of this month.

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