Profit slump at smartphone market leader samsung

profit slump at smartphone market leader samsung

Strong won also contributed to the decline, samsung said. Sales fell by 8.9 percent to 52.4 billion won. Samsung is the world’s largest manufacturer of cell phones, televisions and memory chips.

In the cell phone division, which accounts for more than half of samsung’s business, sales fell by a good 21 percent to 27.5 billion won. Operating profit slumped by almost 30 percent. According to market researchers, samsung lost a lot of business in china to domestic suppliers such as huawei and lenovo in the past quarter. At the same time, apple made inroads in the high-end market: iphone sales rose by 48 percent, according to company CEO tim cook.

According to calculations by the analysis company IDC, samsung even experienced an unusual worldwide decline in sales of four percent to 74.3 million smartphones in the past quarter. As a result, samsung’s share of the smartphone market fell to 25 percent from around 32 percent a year ago. The sudkoreans themselves no longer publish sales figures.

Samsung now wants to fight its rivals in the low and medium price range in china. Initially, this could be to the detriment of profits in view of higher marketing expenses, but after sales increases, the company will earn more again, he said. New high-end smartphones from samsung are also due to be launched this year. In the fall, with the next iphone from apple, there may also be strong competition in this area. In china, samsung hopes for better sales with the expansion of the particularly fast LTE data networks.

Samsung’s consumer electronics business, on the other hand, performed somewhat better. Sales increased by 1.7 percent to 13 billion won. Operating profit jumped 79 percent to 770 billion won. Samsung benefits, among other things, from the fact that more expensive devices with the particularly high ultra-HD resolution are being purchased. In china alone, their sales rose by 88 percent from quarter to quarter, it was reported. In south america, among other places, the soccer world cup also boosted sales of television sets overall.

Samsung had already forecast a significant drop in profits at the beginning of the month. However, it was higher than analysts had expected. Hundreds of managers in the mobile division had their bonuses for the first half of the year cut by a quarter, the "wall street journal" reported on thursday.

Leave a Reply

Your email address will not be published.