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.
Social media mishaps: Why businesses should think twice before cracking jokes online Catriona Pollard CP Communications founder
An ‘opportunity-hunting’ generation: Here's what millennial workers need and want Karen Gately Corporate Dojo founder
Spilling the beans: Why inviting someone to 'grab a coffee' is disingenuous and unnecessary Sue Parker DARE Group founder
The 10 most unemployable job titles on LinkedIn Ian Whitworth Scene Change co-founder
How Emily McWaters manages her Sydney-based business from Kangaroo Island Emily McWaters The Hamper Emporium chief
Why 'Orwellian' performance monitoring is crucial to building an ethical company culture Michael Kodari Kodari Securities chief