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QUARTERLY EARNINGS AT Samsung fell for the first time in two years as sales of smartphones and tablets slowed in developed countries.
The South Korean company estimated an operating profit of 8.3 trillion won (€5.7 billion) for the final three months of 2013, a 6 per cent decline over a year earlier.
The result was lower than forecast by analysts and an 18 per cent drop from the third quarter. Sales rose 5 per cent to 59 trillion won (€41 billion).
Since the last quarter of 2011, Samsung’s operating income has increased every quarter, peaking at 10.2 trillion won (€7 billion) in the July-September period.
The fourth quarter performance shows that explosive growth in Samsung’s lucrative mobile device business has come to a halt.
It will release its net profit result for the fourth quarter later this month.
Analysts said Samsung’s profit fell because its businesses supplying advanced displays and chips for iPhones and Galaxy smartphones posted smaller profit.
They said Samsung’s smartphone business making Galaxy smartphones and Galaxy Gear smartwatches was not as lucrative as before because of higher marketing costs.
“It’s an earnings shock,” said analyst James Song at KDB Daewoo Securities. “The profit at mobile communications business must have been much lower than expected although it’s likely that Samsung gave bigger bonuses to employees.” Song had estimated 9.3 trillion won of operating profit for Samsung.
Samsung Electronics’ smartphone business also faces more competition in China. Starting next week, Apple is scheduled to begin selling iPhones through China Mobile, the world’s largest wireless carrier, a move that could threaten Samsung’s growth in the smartphone market.
Samsung held 21 per cent market share in China’s smartphone market during the third quarter, up from 14 per cent a year earlier, while Apple’s share declined to 6 per cent from 8 per cent, according to research firm Canalys.
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Ouch 5.7 billion only! Bet they will be totes morto at the AGM!
OMG the shame.
Samsung is better
Apple is better
Smartphone market is approaching saturation point. It’s only to be expected.
Samsung are in trouble.a lot of users experiencing problems since the last system update.
I wish I have stayed with HTC. S4 camera sucks in low light. My old HTC was doing better. And Samsung interface is terible.
The second last update you mean? 4.3 is working fine
HTC all the way ,
Turn your camera to auto. Ive never had any issues with my s4. Cameras cracking
Yeh, multi windows knocked off, the photo gallery sucks and, worst of all, in camera settings the zoom has been disabled. Not happy is an understatement!!!! I thought Samsung were better than Apple for updates. Guess I was wrong.
Ive never had any issues after the last update.
In trouble me arse. Their phones have been out a while. It to be expected with old tech. Come summer a new flagship model comes out sales go up profits go up. It’s like saying sales of playstations threes are down lol.
Non story
Galaxy Grand. 6″ screen. Go Samsung.
:D
How do you turn it to auto, Leslie? Thanks. I think I need a “SGN2 For Dummies” book! :)
I got an update on Samsung Galaxy Note 2 about two days ago and it made a mess of some of the apps and programmes. Still a cracking phone though.
Samsung Kies is total rubbish
The HTC one is amazing. I used to have the s4, it was laggy at times and the build quality was driving me nuts. Htc one build quality is on par with Apple, first android phone to be able to boast this feat.
I presume you’re talking about materials and fit-and-finish when you talk about build quality? The build quality doesn’t make a difference to the function of the phone unless of course it interferes with reception in the case of one of the iphones.
How was the build quality driving you nuts?
The s4 was impractical. It was difficult to grip. The HTC one has a more ergonomic design and fits better in the hand. When I pay good money for something I expect everything to work perfectly with a high quality build. Although the s4 polycarbonate backing that creaks in your hand isn’t really the end of the world as you believe, I would prefer something that’s built better as I am paying half a grand for the device!
Samsung phones are quality. If you could access your iTunes from it that would be deadly. The nexus 5 is a quality phone also.
ITunes ewwww kill it kill it with fire.
Them big stupid looking phones its like been in the cinema when someone answers them in a bus at night…..
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