Profits slump by 60 percent: Competition verhagelt Samsung’s business – n-tv.de NEWS

Profits slump by 60 percent: Competition verhagelt Samsung's business – n-tv.de NEWS

Economy
 

 Tuesday, October 07, 2014

 
 
 

 
 Smartphones are still a boom-product. One important when the market leader Samsung loses shares – to the ever-tougher competition from the Far East. There are also sections where Samsung continues to grow.
 

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The increased competition in smartphones put pressure on results of the global market leader Samsung. The leading South Korean technology company expects third quarter of 2014, although operating profits in the billions, but expects it so that it will have more than halved year on year. It is the fourth quarterly decline in a row.

profit well from 2.9 to 3.2 billion euros

The profit from ordinary activities is estimated at 4.1 trillion won (3.1 billion euros), divided the largest manufacturer of mobile phones, memory chips and TVs in its earnings outlook with. The sales will be 47 trillion won, according to some 59 trillion won in the third quarter 2013 operating profit is expected to have fallen over the previous year between 57.8 percent and 61.8 percent and probably 2.9 to 3.2 billion euros lie. This is in line with the circulating analyst estimates. Final figures, the surplus included, Samsung will as usual until later replacement delivery month.

The uncertainties of the business with IT and mobile communication such as mobile phones, networks and digital image processing continued in the fourth quarter of 2014, it said.

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The poorer earnings outlook came as no surprise to market observers. Competition in the smartphone market has become sharper. Particularly in the Asian region were last local manufacturers Samsung’s leading position in business with cell phones and smartphones in dispute, such as market surveys in India and China show. In addition, Apple posted big sales success with its new iPhone models in the luxury segment. Samsung top model, however, the Galaxy S5, sells weaker than expected.

At the same time Samsung continues to focus on the growing need for storage capacity in mobile devices, including smartphones. On Monday, the electronics manufacturer announced the construction of a giant new chip factory to their home location in Pyongtaek far from Seoul for more than eleven billion euros. Earnings in the storage business has improved compared to the previous quarter, Samsung announced further with.

  Source: n-tv.de