Samsung quarterly profits slip as competition with Apple intensifies
Samsung has revealed its first drop in quarterly profit in two years, as the brand's smartphone battle with Apple intensifies.
Samsung: 2013 Super Bowl campaign with Seth Rogen and Paul Rudd
The Korean consumer electronics manufacturer revealed that operating profit between October and December 2013 fell 6% year on year to 8.3tr won (£4.65bn), in line with its previous estimate.
This decrease was in part caused by a one-off 800bn won (£445m) employee bonus payment to mark 20 years since chairman Lee Kun-hee announced a management strategy, which is widely credited as having been the catalyst for Samsung’s recent success.
It also claimed a strong domestic currency wiped around 700bn won (£390m) off its profits.
However, the world’s bigger smartphone maker is facing increasing competition from Apple, which launched its 5S and 5C handsets at the end of last year.
In its results presentation, Samsung said it expected price and product competition to "intensify", adding, "it will be challenging for Samsung to improve its earnings in the first quarter as the weak seasonality of the IT industry will put pressure on demand for components and TV products."
Earlier this month, Samsung revealed its new curved TV product at the Consumer Electronics Show in Las Vegas with a botched presentation by Michael Bay, the director of the 'Transformers' action films, who fluffed his lines and walked off stage.
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- Marketing Manager Ball & Hoolahan £68,000 + Car/Car Allowance, London
- Midweight Copywriter Major Players £35000 - £40000 per annum, London (South), London (Greater)
- Account manager Gemini Search £24000.00 - £28000.00 per annum, London (Central), London (Greater)
- Account Director - Integrated Agency with Int. Drinks, Entertainment & Tech Accounts Rocket Recruitment £44,000 - 48,000 + benefits, London (Central), London (Greater) / London (East), London (Greater) / London (City of), London (...
- Digital Production Manager ADLIB c.£35k, South West England / Bristol, City of Bristol
- Brand Development Manager Tarsh Lazare Marketing Recruitment £40,000 - £42,000, London (Greater)