Samsung Electronics Continues To Struggle As Third Quarter Earnings Drop

Posted: Oct 7 2014, 4:54am CDT | by , in News | Technology News

 
Samsung Electronics Continues to Struggle as Third Quarter Earnings Drop
Getty Images

Don't Miss: This How to find Fingerlings in Stock

The numbers aren't good.

The world's number one smartphone manufacturer by shipments has revealed its earnings guidance for the third quarter of 2014. The numbers aren't good. In the previous quarter which ended September, Samsung's operating profit fell roughly 60 percent to 4.1 trillion won or $3.8 billion.

Samsung reported an operating profit of 10.2 million won in the same quarter last year. Meanwhile, the South Korean technology giant's consolidated revenues are estimated to be around 47 trillion won. However, Samsung didn't comment on the details of its earnings per division and its net income.

It's worth noting that the purpose of earnings guidance is to give investors an idea of what to expect from the company in the future. The announcement is Samsung's biggest drop in quarterly profit since 2009. The company has been battling Chinese competitors including Lenovo and Xiaomi. It didn't help when Apple announced the larger iPhone 6 Plus.

Samsung's mobile division accounts to more than 60 percent of its overall profit from mobile devices. Because of the competition, sales have been declining. Fortunately, Samsung has other profitable divisions. For example, its chip business is thriving.

According to Doh Hyun-woo, an analyst at Mirae Asset Securities, Samsung's annual chip sales could rise 34 percent to 11.5 trillion won next year. “Samsung does make good memory chips,” Hyun-woo tells the Wall Street Journal. Meanwhile, Samsung is planning to invest 15.6 trillion won ($14.7 billion) to build a new chip manufacturing plant in South Korea.

Holiday Gift Guides and Deals

Get your Holiday gifting inspired by Best Toy Gifts with High STEM Value and the Top 10 toy gifts under $10 if you are on budget. The most popular Holiday 2017 toy list include Fingerlings, Crate Creatures and more. Don't miss the new Holiday deals on Amazon Devices, including $29.99 Fire tablet.

This story may contain affiliate links.

This free App Solves You Holiday Shopping Problem


Download the free Tracker app now to get in-stock alerts on Fingerling, Luvabella, SNES Classic and more.

Latest News

Comments

The Author

<a href="/latest_stories/all/all/21" rel="author">Gene Ryan Briones</a>
Gene Ryan Briones (Google+) is a technology journalist with a wide experience in writing about the latest trends in the technology industry, ranging from mobile technology, gadgets and robots, as well as computer hardware and software.

 

 

Advertisement

comments powered by Disqus