Samsung tonight has issued its earnings guidance for the fourth quarter of 2014. The company says that it expects to, yet again, report a decline in operating profit and sales. Samsung estimates that its operating profit for Q4 2014 as 5.2 trillion won, or $4.5 billion. That’s a decrease of roughly 37 percent when compared to the $8.3 billion reported in Q4 2013. The number does, however, beat analyst expectations of 4.8 trillion won.
Samsung says that it expects sales for the fourth quarter of 2014 to come in at around 52 trillion won, or $47.3 billion. That is a decrease of roughly 12 percent, year-over-year, and slightly under expectations of 52.2 trillion won. While the numbers are a decrease when compared to last year, both the operating profit and sales numbers are up from Q3 2014, likely due to the holiday season. Samsung reported 4.06 trillion won and 47.45 trillion won in profits and sales respectively during Q3.
The largest factor in Samsung’s recent struggles is its slowing smartphone business. The company has seen its market share continually decrease recently, thanks in large part to Xiaomi and Apple. Samsung’s goal as it heads into 2015 is cut its smartphone lineup by 30 percent. The South Korean company is known for flooding the market with a variety of slightly different smartphone models in an effort to increase sales.
Samsung is expected to release its full earnings report later this month.
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