South Korean consumer electronics and handset behemoth Samsung Electronics has disclosed its fiscal reports for the Q1 of 2015 which interestingly enough, highlights that the company has posted recorded a sixth consecutive slash in its profits on quarterly basis with thanks largely to the throat-cutting competition from it foes in the smartphone industry. The difference can be seen more vividly when it is compared with record breaking quarterly profits for US giant Apple.
As per the data figures, Samsung recorded an overall profit worth of 4.63 trillion won (nearly $4.35 billion) which suggests a sharp slide of nearly 39 percent. In 2014, the profit margin was a whopping 7.49 trillion won. This under performance by the market giant has not only let down analysts’ expectations but the company’s own predicted profit of 5.9 trillion won.
The quarterly report mentions that Samsung has shipped more than 99 million handsets in total during the Q1. Nearly 80 percent of these sold devices were smartphones, but the revenue in the mobile business was thrashed by nearly one-fifth along with operating profit declining to 2.7 trillion won in contrast to 6.43 trillion back in 2014.
Having all the failure and under performance, Samsung is still optimistic for a bright future ahead of it with heavily depending on its latest iconic handsets, the new Galaxy S6 as well as Galaxy S6 Edge. It is eyeing the emerging markets such as India and China, where the demand for Samsung’s smartphones in the current year is immense despite having fierce competitors such as Micromax and Xiaomi.
Besides this, Samsung has been focusing extensively on grabbing ground in upcoming technologies such as wireless charging and semiconductor business with a focus on memory chips sales. As far as the semiconductor business is concerned, the company’s success rate is nearly 28.5 percent hike in the previous quarter in comparison to the 20.8 percent increase posted in 2014.