Samsung financials Stories January 28, 2016

Samsung has today reported a steep 40% decline in net profits in its Q4 earnings, stating that its chip and component business has been hit by weaker prices. It revealed that net profit for the final quarter of 2015 fell to 3.2T Korean won ($2.7B), significantly short of market expectations.

Facing global economic headwinds, including a sharp fall in oil prices, the company’s fourth quarter earnings fell QoQ, as the components side of the business was impacted by weakened prices for DRAM chips and LCD panels due to overall softer demand in the IT market and PCs.

Samsung’s smartphone business has long been struggling with increased competition from lower-cost Chinese brands, and the WSJ reports that the company expects things to be even tougher this year …

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Samsung financials Stories October 7, 2015

There’s good news and bad news for Samsung today. The good news: the company has forecast a reversal of its seven-quarter decline in profits, suggesting an impressive year-on-year hike of almost 80%.

The bad news is that, while the company itself hasn’t released any details on where the profit is coming from, analysts cited by the WSJ and elsewhere put it down to strong growth in sales of chips and displays – not phone sales. This suggests that Samsung is making its money by helping other manufacturers, like Apple, sell their phones …  expand full story

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Samsung financials Stories February 26, 2015

Samsung, which recently froze the salaries of executives in response to falling profits, has confirmed to Reuters that it is now extending the salary freeze to all employees.

The cost-cutting move is the latest by Samsung Electronics, which in January reported its first annual profit decline since 2011, as it lost market share to Apple Inc’s new iPhones and cheaper Chinese rivals like Xiaomi.

The move comes a few days before Samsung is set to unveil its new flagship smartphone, the Galaxy S6. Korean business professor and author of Sony vs Samsung says that the salary freeze is likely to “inject a sense of crisis into employees” …  expand full story

Samsung financials Stories December 29, 2014

The Galaxy Alpha – first announced in August – may turn out to be a short-lived model: rumors originating in Korea claim that the company plans to discontinue the model in favor of the Galaxy A5 as soon as current inventory is exhausted.

It was reported last month that Samsung planned to sell 30% fewer smartphones next year, as part of cost-cutting measures in response to declining profits …  expand full story

Samsung financials Stories August 12, 2014

Samsung’s troubles are far from over, says credit rating Fitch, predicting that the company’s share of the smartphone market will fall from 31 percent last year to 25 percent next year, reports the WSJ.

Nitin Soni, a Singapore-based director of corporate ratings at Fitch, warned that Samsung had lost its edge with consumers as Chinese companies like Xiaomi, Lenovo and Huawei make cheaper and cheaper products that meet most consumers’ needs.

He added that innovations like wearable devices and curved screens – two of Samsung’s recent tricks – are “unlikely to change the trend” …

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Samsung financials Stories December 10, 2013

Korean site ET News reports that Samsung has cut its smartphone sales target for 2014 from 360M handsets to 330M. The company’s original goal would have represented 25 percent year-on-year growth, now reduced to just 14 percent.

The company is blaming saturation at the top end of the market, with many existing owners of flagship handsets having reduced their upgrade cycle from annual to bi-annual.

Samsung as a whole isn’t hurting – it recently announced record revenues and profits – but the bulk of those earnings came from lower-end handsets and its chip manufacturing business. The ET News piece says that Samsung also plans to move into a whole bunch of new areas, including cloud computing and hi-tech materials …  expand full story

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