360° Coverage : Samsung Keeps Profit Steady As Mobile Sales Decline

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Samsung Keeps Profit Steady As Mobile Sales Decline

Apr 29 2014, 4:43am CDT | by

Samsung Electronics is softening the blow from a increasingly-difficult market for its high-margin phones by keeping costs in check, and by gearing up to sell more TVs for the World Cup. The company...

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18 weeks ago

Samsung Keeps Profit Steady As Mobile Sales Decline

Apr 29 2014, 4:43am CDT | by

Samsung Electronics is softening the blow from a increasingly-difficult market for its high-margin phones by keeping costs in check, and by gearing up to sell more TVs for the World Cup.

The company released its first quarter results on Tuesday morning in Seoul which were largely in line with its forecasts earlier this month: group sales declined by 9%, but net profit rose by 5.9% year on year to 7.57 trillion won ($7.3 billion). Sales at its all-important IT and Mobile communications division slid by 4% quarter-on-quarter.

Samsung, which derived more than two thirds of group operating profit from its smartphone making devision, blamed a “decline in mobile services demand” along with the typical weak seasonality of the year’s first quarter.

But it kept profits in check by “efficiently managing marketing expenses.”

Samsung also expects its display panel business to improve later this year thanks to the World Cup effect, as consumer invest in the latest high-density pixel television sets to watch the soccer tournament which runs from June 12 to July 13 in Brazil.

Samsung is still the world’s biggest smartphone maker, and its latest high-end Galaxy S5 smartphone also appears to be selling faster than last year’s S4, according to figures provided to Forbes by one of its popular third-party services.

But research out today from Strategy Analytics also shows the company’s market share slipped to 31% from 32%, in the first quarter of 2014, thanks to increasing competition over cheaper, mid-tier devices.

Huawei and Lenovo in particular are ramping up the competitive pressure according to Strategy Analytics Neil Mawston, who said the Chinese smartphone makers had captured 5% of the global market for smartphones just in the first quarter.

Global smartphone shipments grew overall in the first quarter from last year, but demand was healthiest in Asia and sluggish in North America, due to “changes in the operator subsidy mix.”

“This was Samsung’s first annual marketshare loss in the smartphone category since Q4, 2009,” said Mawston. “Samsung continues to face tough competition from Apple at the higher-end of the smartphone market and from Chinese brands like Huawei at the lower-end.”

 
Update
2

4 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by 30 per cent ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

5 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 an ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

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