Samsung expects to post 48.0 trillion Korean won in consolidated sales as well as an operating profit of 6.9 trillion Korean won in Q2 which results in a 4 percent decline as opposed to the same time last year. Even though the company’s semiconductor and TV business is poised to grow it appears that the mobile business is at fault, particularly sales of the latest flagship smartphones.

Soon after the Galaxy S6 and Galaxy S6 Edge were released it became evident that there was a lot more demand for the Galaxy S6 Edge than what Samsung had anticipated, this resulted into supply shortages with Samsung not being able to fix the issue for months.

That’s not all, apparently the Galaxy S6 Edge has managed to cannibalize sales of the Galaxy S6. A source familiar with the matter tells WSJ that Samsung expected to sell four Galaxy S6 units for every S6 Edge unit sold but in reality the demand turned out to be a 50/50 split between the two handsets.

Samsung was thus left with Galaxy S6 stock that just wasn’t selling and not enough stock for the Galaxy S6 Edge that was very much in demand.

With all of that out of the way and production of the Galaxy S6 Edge ramped up enough to meet demand by the end of last month it’s possible that a positive trend could be witnessed in the third and fourth quarters provided that the Galaxy S6 remains a compelling option for customers many of which are already holding out for the Galaxy Note 5 and even the next-generation iPhones.

Filed in Cellphones. Read more about , and .

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