Samsung has reported its earnings for the fourth quarter of 2014 announcing a 36% drop in profits year-over-year and a 64% drop in profits from its mobile division.
The company generated 52.73 trillion won in revenue in Q4 and profits of 5.29 trillion won ($4.84 billion). That's down from 59.28 trillion and 8.31 trillion won in Q4 2013. Earnings for its mobile division declined for the fifth consecutive quarter due to increased competition from Apple and other smartphone manufacturers such as Xiaomi.
One highlight from Samsung's earnings was the performance of its semiconductor division. Its profit was 2.7 trillion won, the highest its been in over four years. The latest rumors have the company making 75% of A9 chips for future Apple devices.
Samsung says that looking ahead to 2015, earnings for components are expected to be static, due to slow seasonality across the IT industry. During this time, the company plans to focus on ramping up the volume of the System LSI Business’ 14-nanometer process, while also focusing on improving the Display Panel segment’s premium product offerings.
In regards to its ailing mobile business, Samsung says it will "focus on recovery by differentiating its mobile devices using new materials and designs, while also more efficiently managing costs through, among others, streamlining product line-ups." Recent reports have suggested that Samsung might try to differentiate itself with technology that is difficult for its competitors to replicate such as flexible displays and edge displays.
Samsung's profits pale compared to Apple's which set a new record. The company posted quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share.
No comments:
Post a Comment