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Samsung profits slump 60%

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Samsung profits slump 60%

Samsung’s quarterly profits are set to slide by just under 60%, according to latest guidance from the Korean tech giant.

Speaking ahead of the release of its final results for the three months from July to September, Samsung said profits are likely to be down 59.7% compared to the corresponding period last year.

In the same quarter in 2013, it delivered a record profit of $9.6 billion (£5.96 billion), compared with $3.8 billion (£2.36 billion) for the quarter that's just ended.

Earlier this year Samsung said it is planning on shifting focus away from its mobile products, with reports last month revealing the consumer electronics giant had moved hundreds of engineers from its mobile division to its TV and home entertainment businesses.

Analysts believe that Samsung’s current woes stem from a failure to build on the boom in Galaxy phones in the past three years.

Apple’s continued success with the iPhone, coupled with the growth of the likes of Xiaomi in the budget sector, have left Samsung reeling across all areas of its smartphone business.

Samsung said in a statement that is planning to reinvogorate demand for its handsets with "new smartphone line-ups featuring new materials and innovative designs.”

The latest numbers from Samsung come as its latest contender, the new Galaxy Note 4 handset, is due for release imminently.

“The Note 4 will help to stabilise Samsung’s device unit in the fourth quarter, but it will need more than one evolutionary model to stop the iPhone juggernaut,” said Strategy Analytics’ Neil Mawston.

Source:

Bloomberg

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