Monday27 March 2023

Expected decline at Samsung

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As expected, earnings of the Korean technology giant Samsung has dropped in the last quarter of 2013. Compared to the year before, the company's profit decreased by 6%, and stopped at 7.73 billion. The operating profit of the department who earns the most, one for mobile devices, has remained the same as a year ago, but fell by as much as 18 % compared to the previous quarter. It is believed that the reason for this is the release of new iPhone models which dragged away customers from Samsung, especially in the pre-Christmas period.

Besides the competition, the decline in profit was also due to a one-time bonus to employees in the amount of $745 million. The bonus is paid out to mark the 20th anniversary of a new era of company. The crucial moment for the celebration is considered when the chairman Lee Kun-hee introduced a new management system that prompted the meteoric rise of Samsung in the last two decades.

One of the departments that have suffered the greatest losses is Samsung Display, whose profits fell by 90 %. In fact, sales of the flagship mobile phone the Galaxy S4 were weaker than expected, as well as televisions, so the demand for screens from this division have been significantly reduced.

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Last modified on Monday, 27 January 2014 12:40

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