Monday, September 16, 2019
Get Adobe Flash player

Samsung Electronics forecasts drop in profits

Posted by Rattana_S On April - 8 - 2014

Samsung Electronics, the world’s biggest maker of TVs and mobile phones, has forecast a drop in profit for the second quarter in a row.

It expects to make an operating profit of 8.4 trillion won ($7.9bn; £4.8bn) for the January-to-March quarter, down 4% from the same period last year.

This follows a 6% decline in operating profit in the previous quarter.

The drop indicates the challenge faced by Samsung to boost its earnings amid falling prices of smartphones.

The success of Samsung’s Galaxy range of smartphones has been one of the biggest drivers of its growth in recent years.

But rising competition in the sector has seen vendors reduce prices to attract more customers, putting pressure on their profit margins.

One analysts said the firm may need to cut costs to sustain its profit growth.

“What Samsung needs to do this year for additional growth are things like cost reduction and reducing marketing costs,” said Greg Roh, an analyst with HMC Investment and Securities.

“In some sense, Samsung has no way to prevent a decline in its earnings without improving internal efficiencies.”

Leave a Reply

TAG CLOUD