Samsung Profits Drop As Growth Slow down

Samsung Mobil

Samsung's smartphones sale fell marginally during the fourth quarter as the world's top smartphone maker offers weak outlook moving into 2014.

The company has spent too much of the last two years eating Apple's lunch, as transactions of Galaxy-branded smartphones have increased past most every other device in the market. But fierce race from Apple in the fourth quarter shows that the concourse fight is far from settled.



The Galaxy Note 3 of Samsung went on sale at the start of the fourth quarter. It's a great hit - one of the best devices of last year. And though Samsung moved more than 10 million of them, it wasn't sufficient to shore up the company's financial presentation. The Company posted its first drop in profits in two years.

The company reported a profit of 7.73 billion dollars on sales of 54.95 billion dollars for the fourth quarter period. Revenue was at a top high, but profits fell 18 percent compared to the third quarter period. The Samsung cited one-off balance sheet items as the cause for its falling profit. The Samsung's finances took a hit from employee bonuses and currency exchanges.

The company’s correspondent said sales of its smartphones dipped a little in the Oct to Dec, but as the company no longer releases hard sales figures for its devices it didn't say how many it sold. Expert estimates place sales among 85 and 87 million. Sales of Samsung tablets doubled matched to the year-ago period thanks to the up-to-date additions to the lineup.

Smartphones, tablets, and their related apparatuses accounted for 66 percent of all Samsung's income. The rest was produced by its television and appliances businesses. The company blamed an over-supplied TV panel market for softness in its television unit's incomes.

Even though Samsung claims smartphones sales fell only a little, it's shocking that the dip took place during the leave quarter. Maximum companies benefit from a seasonal bump in sales thanks to end-of-the-year gifting. Samsung isn't the first business to say that Oct  Dec quarter sales were off; Nokia company also reported late in the same period that sales of its flagship Galaxy S4 smartphone were well less of forecasts. Nokia had expected to sell more than 100 million devices but later revised that number down to 60 million.