Samsung confirms its quarterly profits fell by 59.65% to $4.35 billion, despite increased smartphone shipments
Wednesday, October 8, 2014/
Samsung Electronics has confirmed speculation about a big fall in its quarterly profits, which fell by 59.65% to 4.1 trillion Korean won ($4.35 billion) in the third quarter, down from 10.16 trillion a year earlier.
Samsung also revealed its year-to-date profit now stands at 19.78 trillion won, down 30.52% from 28.47 trillion won at this time last year.
The fall in profit came alongside a 20.45% fall in revenues, from 59.08 trillion won a year ago to 47 trillion won this year.
In a statement to investors, Samsung said while its shipments increased in the quarter despite intense competition, aggressive marketing and a lower average selling price (ASP) hurt revenues, with the company selling a lower proportion of high-end devices.
The result was compounded by weaker results in its consumer electronics division including a lower ASP for TVs, which in turn reduced revenues for the company’s OLED display manufacturing business.
The fourth consecutive quarterly fall in profit comes after profits fell 24% year-on-year in the June quarter to 7.2 trillion won, with the conglomerate responding with a restructure of a number of affiliated companies.
Amantha Imber runs a successful business — but she still has impostor syndrome Amantha Imber Inventium founder
Your future customers: How to crack the gen Z code Simon Slade Affilorama co-founder
Four stupid business decisions that burnt through $1 million Ian Whitworth Scene Change co-founder
Why corporate content will send your customers running Luke Buesnel Story League director
How to write the perfect job advertisement Alex Hattingh Employment Hero chief people officer
How to outshine the millions of websites ranking poorly on Google Adam Rowles Inbound Marketing founder