Samsung Electronics' profits declined for two quarters in a row.

Samsung Electronics' profits declined for two quarters in a row.

Samsung Electronics Co., the world's largest smartphone maker, reported a second consecutive quarter of profit decline, mainly due to a decline in the price of Galaxy devices and parts due to stagnant demand.

Samsung Electronics, based in Suwon, South Korea, said in a press release yesterday that operating profit fell to 8.4 trillion won ($8 billion) in the first quarter ended March from 8.8 trillion won a year earlier, according to Bloomberg. Compared with the average estimate of 8.3 trillion won by 29 analysts polled by Bloomberg.

Samsung Electronics said quarterly revenue was about 53 trillion won, compared with an average of 54 trillion won expected by 33 analysts in the market.

In the face of market saturation and the launch of a new iPhone by Apple Inc., sales of high-end products slowed, dampening Samsung's profits, while Samsung focused more on low-cost devices.

Samsung launched the Galaxy S5 and a variety of tablet products to boost demand as competition from Chinese mainland makers eroded display profits.

"Samsung's smartphone sales strategy has shifted to expanding the lineup of low-cost products rather than focusing on a heavy model," Marcello Ahn, an analyst at Quad Investment Management (Quad Investment Management) in Seoul, said before the results were announced. Although the slowdown in high-end demand has led to a decline in the average price of smartphones, Samsung smartphones still beat the second-tier laggards. "

Samsung shares fell 0.8 per cent to 1386 won at 08:17 Taipei time, reining in their year-on-year gains to 1 per cent. Samsung Electronics shares fell 9.9% last year, the biggest annual decline since 2008.

Samsung did not release net profit figures or details of the results of its business unit yesterday because the audited results will be released later this month.