Samsung Q1 profit slips despite higher smartphone shipments

News Wireless Global 29 APR 2015
Samsung Q1 profit slips despite higher smartphone shipments

Samsung Electronics said revenues for the first quarter fell to KRW 47.12 trillion from 53.68 trillion the year before. Operating profit slid to KRW 18.16 trillion from 21.63 trillion, and the net profit went lower to KRW 4.63 trillion from 7.57 trillion. 

Samsung revenue and operating profit (Q1 2013 - Q1 2015)

Revenues went down to KRW 10.26 trillion from 11.32 trillion for Consumer Electronics, while Display Panel revenues lifted to KRW 17.10 trillion from 15.56 trillion. Revenues fell to KRW 25.89 trillion from 32.44 trillion at IT & mobile communications, and the mobile division's operating profit fell to KRW 2.7 billion from KRW 6.4 billion a year ago. 

Samsung said smartphone shipments increased quarter-on-quarter, led by mid to low end products, leading to a drop in its average selling price. Network revenue declined from Q4 due to decreased investment in LTE networks by overseas carriers.

Looking forward, Samsung expects smartphone and tablet demand to stagnate in the second quarter due to continued weak seasonality. Profit should improve on the back of increased high-end sales after the S6 launch, although marketing expenses will also increase. For the full year, product and marketing competition will increase amid a slowdown in smartphone growth. Samsung added that demand might weaken due to negative forex effects.

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Mobile

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Samsung

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Global

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Sales figures, Financial figures, Consumer devices, Handsets

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