Just a day after Apple announced record Q1 profits, Samsung opens its books

Samsung reported a 39 per cent drop in net profits in the first quarter of 2015, finishing at $4.33 billion compared to $13.6 billion amassed by Apple in the same period, thanks to promising sales of the iPhone 6 and the iPhone 6 Plus in China.

With the new Galaxy S6 and the S6 Edge devices yet to join the battle, Samsung's sales of an estimated 80 million phones in the first quarter were led by mid-range and low-range phones. the Galaxy S5 did not even earn a mention in the race.

At the same time, Apple sold 61 million iPhones which generated much greater profits thanks to the high-end specs and lack of low-cost phones being sold by the Cupertino giant.

Samsung may hope to reduce the deficit in the second quarter with the Galaxy S6 and the S6 Edge hitting stores in April. But a promising first quarter performance by Apple could mean that most high-end gadget buyers already purchased their iPhones before the Galaxy phones could enter the market. We do not expect the Galaxy S6 phones to turn the tide in a major way.

Samsung also revealed that even though the Galaxy S6 phones are expected to perform, their sales may not offset rising marketing costs and a declining sales of mid-range phones in the second quarter.

Along with the drop in net profits, Samsung also announced a drop of 12 per cent in  quarterly revenue and a 30 per cent fall in operating income. However, Samsung has not revealed the quarterly performance of tablets which proved to be Apple's Achilles heel with a 29 per cent drop in sales over the first quarter of 2014.

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