News

Samsung with lowest Profit since Q3 2011

News
October 31
by chris eilers

Samsung is next to Apple one of the few phone manufacturers that actually make a decent profit. The last quarter in 2014 Samsung experienced a significant decrease in profit though. Samsung’s consolidated revenue was 44.7 Billion, compared to 56 Billion
USD for the same time in Q3 2013. That is Samsung’s lowest profit in 3 years, since Q3 2011.

Sad-Samsung-Droid

Traditionally for Samsung, the mobile category has been the most profitable in the last years. Now the mobile categories is actually causing the most worries for Samsung, with a drop in Sales of more then 15%. The operating profit actually decreased to 1, 653 million USD, from $4,179 million in Q2 and nearly $6,350 million in 2013.

Income Statement Samsung

The reason for the big drop in Sales and Profit is according to Samsung that they sold mostly cheaper and midrange products this quarter. The Samsung Galaxy S5 Sales dropped and the Samsung Galaxy Note 4 launched pretty late in Quarter 3.

The tablet sales with the Galaxy Tab S series, actually improved but not enough to compensate for mis-performing phone sales. Samsung expects higher sales and profits in the holiday season and with the Note 4. They still have to fight though with high competition especially in the holiday season.

Segment Sales and Profit Samsung

Samsung TV sales also show nearly zero profit. Actually the only business of Samsung that increased Profit and Sales is the semiconductor business for Samsung.

Especially in South East Asia but also worldwide Samsung is in a tough spot. They face increasing competition on both ends. On the one hand there is the ongoing war with Apple for Premium Flagships. On the other hand brands like Xiaomi, Huawei and OnePlus increasingly take sales of the lower and mid-range phones from Samsung.