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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13 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
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told toda ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken in ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat t ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datu ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last month. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

8 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensation. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

8 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Ser ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Ba ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) today. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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