Samsung sees profits slip in Q2 as demand for smartphones stagnates

Samsung logoSamsung released its Q2 financial statements in South Korea on Thursday, and while the company turned a net profit to the tune of 6.25 trillion Korean won ($6.1 billion), that number represented a decline of 19.6 percent from a year earlier.

In a statement, Samsung said that the weak quarter was the result of slowing demand for smartphones and tablets, which led to increased marketing expenditures to reduce inventory. “Amid low seasonality, Smartphone demand remained flat [quarter-over-quarter] while [it] declined slightly QoQ for Tablet,” a Samsung presentation read (PDF). Samsung ships more smartphones than any other country in the world, and the company wrote that “slower demand for mobile devices also impacted Samsung’s logic chip business or System LSI.”

In addition to the slowed market growth, Samsung also said that the appreciation of Korea's currency played a part in eroding some of the company's profit. As the won strengthened, the company was able to bring back less of the revenue it made off consumers in foreign markets.

Samsung's second quarter results press release was cautious about the future, stating that “the second half of 2014 will remain a challenge,” and “prospects for growth remain unclear as competition over global market share intensifies in the mobile industry.” Still, the company does expect to see growth in consumer electronics next quarter, potentially spurred "by shipments of premium TVs with curved and UHD features.”

Samsung also mentioned that in the second half of the year it would “focus on releasing new premium mobile devices and a new flagship model in the large screen category, along with new mid- to low-end models with more advanced features and competitive pricing.” Analysts told The Wall Street Journal that Samsung may have to focus on creating more sub-$200 devices, as well as focus on ways to reduce the costs of making its more high-end phones.

In its press release, Samsung also promised “a more diverse product portfolio” of wearables in its Galaxy Gear line.

Source: Ars Technica

Tags: report, Samsung

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Apple plans on offering a cheaper smart speaker that will be priced at $199
Chrome will adopt a new approach to indicating site security
Data shows they are leading smartphone sale worldwide
Is this an error or it is really happening?
This only works on posts made by profiles that are public
The proposed topic and architecture was originally presented to the JPEG Committee in 2016
The device will be standalone and based on a Qualcomm chipset
The rest of the specs as seen on Geekbench include 8GB of RAM
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (10)