Samsung earns considerably less money with phones




Profit from Samsung’s mobile division declined in the quarter by 74 percent. The company is mainly in China suffer from competitors like Xiaomi. The profit of Samsung as a whole declined sharply in the past quarter: 49 percent.

Samsung logo (45 pix) The mobile division of Samsung achieved a turnover of 18.5 billion euros converted. in the quarter This is a decrease of 14 percent compared with a year earlier. The profit of the division amounted to 1.3 billion euros converted. This is a decrease of 74 percent compared with a year earlier, and the lowest point since the second quarter of 2011, analyzes The Wall Street Journal.

Samsung is facing increasing competition from cheaper phones, such as the Chinese Xiaomi. Worldwide, Samsung is still the biggest phone provider, according to data from IDC, Counterpoint and Strategy Analytics, but the size of its market share is decreasing. A year ago, Samsung had a third of market power; now only a quarter. Samsung would be even overtaken by China as the largest Xiaomi phone supplier.

To investors, Samsung revealed that the company has indeed sold more smartphones, but the company has especially less high-end models supplied. The company promises improvement and greater efficiency: the latter could mean that Samsung will release fewer phones, reports Associated Press.

The Consumer Electronics- branch of Samsung, including his televisietak fall, also took less money. Sales of that branch fell to 11.6 trillion won; converted 8.7 billion euros. which is a decrease of 11 percent. The semiconductor branch of Samsung, which include making memory and socs, fetched slightly more money: 9.89 trillion won, converted 7.4 billion euros. A year ago it was still 9.74 trillion won.

Sales of Samsung as a whole came down in the last quarter to 47.5 trillion won, converted 35.7 billion. A year ago, even 59 trillion won, was converted 44.5 billion; a decrease of 19 percent. Net profit amounted to 4.2 trillion won, converted 3.1 billion; about half less than a year ago.


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