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.
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expected as they started cheating the customers not providing the proper updates and customers migrated. now I bought moto x before i own galasy s3.. Like me everyone changed their views on samsung. I also have other samsung products but soon i will replace it.
you are responsible for what you have done otherwise you would been doing great now.. I hope this continues if you wont address customer issues seriously.. you just address customer who buy new phones you forget about old phones and give all bullshit reasons..
Totally agreed! Had an S3 untill now. Was initially VERY impressed and was hoping to upgrade to an S5, but after poor upgrade cycle experience, I decided to buy a local, South African made phone (Zest T1), because the poor Samsung software updates made me become familiar with custom ROMs, which I can easily upload on the T1 (which is unrooted and unlocked as a standard). When my Tab2 7″ dies, I’ll replace it with a non-Samsung option as well – might not even get a new tablet when it’s done. Either way, bye-bye Samsung.