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Samsung’s earnings estimate for Q3 2014 hints at a 60 percent drop in operating profit

Samsung has released its earnings estimate for Q3 2014 and it doesn’t good at all. Samsung is estimating a 60 percent drop in its operating profit for the last quarter when compared to Q3 2013. According to K-IFRS, Samsung has a consolidated sales of around 47 trillion Korean won with a consolidated operating profit of 4.1 trillion won which is lower than the operating profit from Q2 2014. These figures are just estimates and Samsung is expected to reveal actual numbers in the last week of October. A major reason behind its waning profit is due to declining smartphone sales. Samsung’s smartphone sales are getting squeezed by Apple in the high-end segment while the Chinese vendors are competing fiercely with Samsung in the entry-level smartphone segment.

Due to this slowdown, Samsung is investing in chip manufacturing and has managed to bag a deal from Apple to provide them with next-generation chips based on 14nm process. Recently, Samsung announced its plan to invest around $14.7 billion on a new semiconductor plant in South Korea.

Via | Source

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PeerBr
PeerBr

I agree with these comments. Samsung recently became more arrogant than Apple – devices and accessories only communicate with Samsung devices, trying to squeeze Google out of its own operating system, even to the point of developing an entire OS on their own (like they did not own everything to Android). Let’s hope they refocus – competition is good for everybody.

Aquaboyz
Aquaboyz

to be honest, it’s a good thing that Samsung don’t make a good profit this year compared to last year’s. so that, they will come out with better devices in the future (keep your fingers crossed though). we can’t let this company to ever be on the safe zone, knowing that they’re selling millions devices and they keep churning similar devices for 4 years. we, the consumers. have had enough and now it’s time for the real innovations. and also, since there are many companies out there producing quite a number of good smartphones, i think, it’s time for Samsung… Read more »

johnyjackson
johnyjackson

US and China yeah. They rule the earth with market and military.

Raajputro
Raajputro

I am happy to hear the news. Since shamesung has been giving me pain through upgrading my beloved s3 to Jellybean 4.3 and later refused to give further software support. My contact is ending soon, i would love to buy the Galaxy Alpha but now i have decided to take Xperia Z3.

droopyar
droopyar

Thats because samsung mobile designs are ALL horrible, except new alpha brand which is very nice. Compare this device with Xioami MI4. Samsung must upgrade URGENT their designs