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Samsung profits slow as Apple bites back

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Samsung profits slow as Apple bites back

Samsung's quarterly profits grew at their slowest rate since 2011 in the fourth quarter of last year, with the squeeze from Apple’s iPhone 5S and iPhone 5C likely to blame for the Korean giant’s stagnation.

The company made an overall profit of £4 billion in the three months to December 2013. However, its mobile division’s income proved to be flat compared to the same quarter in 2012.

Sales of its Galaxy S4 device came in at nine million for the quarter, according to Daewoo Securities analysts. While that's only one phone in a huge roster, it does not compare well to Apple’s projected sales of over 55 million iPhones in the same time period.

Samsung’s earnings are expected to flatline in 2014, as it faces up to pressures not only from Apple, but also from manufacturers across Asia offering cheaper smartphones.

Reports have also suggested that the company is looking to slash its huge marketing budget and bring it in line with profits.

Samsung's spending on advertising and marketing has outstripped Apple, Google and HTC in recent years, helping the South Korean tech giant to its position as the world’s biggest mobile-maker.

Samsung will be hoping its forthcoming Galaxy S5 can wrest back the initiative. The device is due to launch in spring, with April a likely release date.

Source:

Bloomberg

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