Samsung’s Q2 2014 profits drop, no relief sighted for next quarter

620x300-samsung-galaxy-gear-smartwatch

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.

Reported By

Leave a Reply

10 Comments on "Samsung’s Q2 2014 profits drop, no relief sighted for next quarter"

 

Sort by:   newest | oldest
PD
August 3, 2014 6:32 pm 6:32 PM

“What goes up must come down.”

Yogesh
August 2, 2014 6:55 pm 6:55 PM

6 billion net profit, really great, but still it shows: it is 20% less as compare to last year
🙂
quite interesting .
Whatever it may be the reason, but Samsung has made it really Big: with Android based smartphones.
Recently, my 2 friends purchased their 1st ever smartphone:
1got Samsung Trend @7100
n another got duos 2 @ 9500 n they are really happy
🙂
Let us see how long with its heavy marketing tactics, this samsung keep the lead
Otherwise, its handsets are way too overpriced.

Darshan
August 2, 2014 8:39 pm 8:39 PM

from local market i think because online trend is for 6500rs and s duos 2 for 8000rs

Manu
August 1, 2014 5:16 pm 5:16 PM

Very very good.
Samsung think that we Indians are idiots and dump into our country low quality cheap products which are good for nothing. And they think we will continue to buy their crap. Go to hell Sammy

krish
August 1, 2014 9:59 pm 9:59 PM

they even launch less powerful processor phones in india than other countries.

wpDiscuz