Samsung sings the blues

robert-johnsonSamsung has consulted its tarot cards and thinks it is headed for a weaker-than-expected second quarter earnings.

This was caused by a supply shortage which gutted the sales of its latest smartphone. There was also weak demand from key markets.

This suggests that Samsung will struggle to replicate the growth it recorded at the turn of the decade as smartphone competition intensifies and demand softens in China and Europe.

Operating profit for the second quarter is predicted to fall four percent from a year earlier to $6.13 billion, Samsung said in a filing, its best profit in four quarters but also the seventh straight period of annual decline.

Revenue for the quarter is expected to fall 8.3 percent from a year earlier to $48 million, well below the $53.4 million average analyst forecast and the fifth consecutive quarter of annual decline.

Samsung’s annual profit is expected to rebound this year from a three-year low in 2014, but its shares have languished in recent months amid doubts about sales of its new Galaxy S6 smartphones.

A failure to make enough curved-screen S6 edge models to meet demand likely hurt mobile-related earnings, analysts believe.