Samsung’s second quarter earnings figures miss analysts expectations
Samsung has announced that it made a profit of 7.2 trillion won ($7.1 billion) in the second quarter of 2014, missing analyst expectations of 8.1 trillion won, on sales totaling 52 trillion won. The weak quarter is being attributed to factors such as increased competition from Chinese vendors and the rise of the Korean won, though Samsung is expecting to make a comeback in the next quarter by counting on demand for displays and new products (the Galaxy Note 4, in particular), though with Apple’s larger iPhones looming on the horizon, it may not be as clear cut for the company as it has been in the past.
Samsung said in an emailed statement:
The second quarter is a seasonally weak period for smartphone demand in China. The company cautiously expects a more positive outlook in the third quarter with the coming release of its new smartphone lineup. Samsung does not expect any major marketing expenditure to occur in the upcoming quarter.
Kwon Oh-hyun, Vice President of Samsung Electronics and Co-CEO Yoon Boo-keun and Shin Jong-kyun had earlier stated that demand for the company’s smartphones and TVs is decelerating, and most of the decrease in demand can be attributed to the company’s low-end and mid-range smartphone lineups, which no longer offer any noticeable advantage over devices from other manufacturers, including those like the Moto G or Moto E. Also to blame is the company’s exorbitant marketing spend, though Samsung has said it is taking steps to tackle the issues it is currently facing.