Samsung Official Quarterly Report Published
Samsung Electronics has published its official quarterly report for the first quarter and is registering its sixth quarterly decline in a row.
The company's operating profit amounted to $ 5.64 billion, which is almost 30% less than last year. These figures are almost identical to the previously published own forecast of the company.
Gross profit for the quarter decreased by 16.04% to $ 16.949 billion. The company's sales fell 12.22% to $ 43.98 billion. For the three-month period ended March 31, 2015, the company received a net profit of $ 4.3 billion, which is 39% less than a year earlier.
Samsung is experiencingproblems in the smartphone market, where competition from Apple and a number of Chinese brands is intensifying, as a result of which the company partially lost not only the Asian, but also the native Korean market.
The company did not name the size of sales of mobile devices, but according to Strategy Analytics researchers, in January-March, the South Korean giant shipped 83.2 million smartphones to the world market against 89 million units a year earlier.
According to analysts, sales of new smartphones Galaxy S6 and Galaxy S6 Edge, which have appeared on the markets of 20 countries since April 10, may account for up to 25% of Samsung’s revenue in the next quarter. So far, their sales are in line with the company's plans. “Demand for the Galaxy S6 is still better than expected,” said Samsung Vice President Park Jin Yang.
Samsung is countingthat the introduction of new technologies such as wireless charging functions and services such as a payment system will attract customers to the brand's smartphones.
The semiconductor business of the company completed the quarter with an operating profit of $ 2.73 billion, which rose 50% year on year. The display unit posted operating income of $ 485 million.