The golden days are over: For the year 2014 South Korean smartphone giant Samsung has realized a significant profit decline. The cheap competition from China is getting stronger.
The tougher competition in smartphones has in the global market leader Samsung leave deep scars in the past year as a result. For 2014, the leading South Korean technology company for the first time since 2011 again expected a decline in operating profit. This is reflected in the earnings outlook for the fourth quarter, the largest manufacturer of mobile phones, memory chips and TVs published on Thursday.
A third loss of profit
According to fell the profit from ordinary operations in the October to December, year on year by 37.4 percent to 5.2 trillion won (four billion euros). For the full year, this would mean a decline of 32 percent to 24.9 trillion won.
Nevertheless, the quarter outlook was better than market experts expected. In the third quarter of 2014. The operating profit amounted about four trillion won.
chip business is booming
Especially in the chip business is expected to Samsung have increased significantly. In the fourth quarter operating profits by probably 23 percent had increased, the Yonhap news agency reported, citing the South Korean investment firm IBK Securities.
Samsung did not comment on the numbers first. Final quarterly figures including the surplus will, as usual, replenished at the end of the month.
Sales also the flagship subsidiary of the Samsung Group grew in the October to December compared to the previous quarter. Thereafter, the proceeds according to the estimates own was 52 trillion won, according to 47.45 trillion won in the third quarter. In comparison, however, this represents a decline of 12.3 percent.
The numbers are evidence of the fierce battle in the smartphone market. Particularly in the Asian region were last local manufacturers Samsung’s leading position in the business with mobile phones and smartphones in dispute, such as market surveys in India and China show.
Apple also makes printing
In addition, registered in the premium segment, especially Apple with its two models of the iPhone 6 big sales success. Thus, the rivals put the South Koreans to both cheap and expensive equipment at. Among the announced competitive strategies of Samsung Electronics is also a strong reduction of the smartphone range.
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