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Samsung expects substantial decline in earnings due to increase smartphone competition
Samsung expects a drop in quarterly profit by 60 percent compared to last year. The decrease is mainly attributable to poorer outcomes of smartphone division. Samsung is facing increased competition from low-cost smartphones and iPhones.
The quarterly profit fell by 59.7 percent to 4.1 trillion won in the quarter, or 3 billion is expected from Samsung. It would be the strongest decline since 2009 for the Korean group are. Quarterly revenue fell by slightly more than 20 percent compared to last year.
Samsung attributes the decline to worse results of cell division and its implications for the OLED branch and chip business. The quantity supplied smartphones grew even somewhat, but increased marketing costs and lower prices for the aircraft had a negative impact. Samsung sold relatively less high-endtoestellen as the Galaxy S5, where the company makes more profit, and older models were strong declines.
Samsung is facing fierce competition in the high-end market from Apple, while a vast amount of cheap Android devices among other Chinese manufacturers appear at the bottom of the market. Samsung says that the results will improve with the arrival of ‘new line-ups with new materials and innovative designs, “while the company also new midrange and low-endtoestellen goes’ with a competitive edge in terms of hardware specifications and price’ release .Viewing:-143
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