Following huge sales slump and cut throat competition from Chinese and Indian brands, Samsung announced its Q2, 2014 financial statements in South Korea on Thursday. The company made a net profit $6.1 billion, which is a stark decline of 19.6 percent when compared to Q2 2013.
According to Samsung, the decline in profits was due to stagnant demand for smartphones and tablets as well as strong Korean currency. In fact, Samsung had to spend a lot of marketing money to sell their remaining inventory. Samsung also stated “the second half of 2014 will remain a challenge and the prospects for growth remain unclear as competition over global market share intensifies in the mobile industry.”
Samsung reassured to its investors that they would “focus on releasing new premium mobile devices and a new flagship model in the large screen category, along with new mid-to-low-end models with more advanced features and competitive pricing.” Samsung promised a diverse product range of wearable devices in its Galaxy Gear line-up.