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

By August 1st, 2014 AT 1:34 AM

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.

Computer science engineer turned technology blogger. Following consumer electronics industry closely from 2006, he can now predict pretty much where the market is heading. He has a dream to own Android, Windows Phone and iOS smartphones all at the same time.

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PDDarshanYogeshkrishManu Recent comment authors
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PD
PD

“What goes up must come down.”

Yogesh
Yogesh

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
Darshan

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

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