Samsung predicts profits drop ahead of Galaxy S5 launch
Samsung Electronics is preparing to post its second consecutive quarter showing a drop in profits, as it readies the global launch of its Galaxy S5 handset.
Samsung: profits predicted to fall as company prepares to launch the Galaxy S5
The brand has estimated it will record an operating profit of $7.96bn (£4.8bn) for the three months from January to March, which is 4% lower than the same period last year.
The drop in profits follows a 6% decline in the previous quarter.
The Galaxy S5 is being launched later this week, and is reported to have priced the handset at 10% cheaper than its last model, the S4.
Samsung is also understood to have reduced its marketing spend for the new model in an attempt to cut costs.
Last month, Ines van Gennip, Samsung's UK and Ireland marketing director told Marketing that the brand expects to make product placement a key part of its marketing plans for the launch of the new phone, following the buzz around the Ellen DeGeneres Oscars selfie.
Earlier this year, Samsung said that it expected competition in the smartphone sector to intensify, as it faces a strong fight for market share from rivals HTC, Apple and Huwawei.
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- Head of Marketing Operations - Fixed Term Contract 12 months NEST Corporation Competitve, London
- Senior Account Manager / First Time Account Director Content is King £35k - £45k per annum dependent on experience, London (Central), London (Greater)
- Head of Acquisition & Retention NEST Corporation Competitive, London (Central), London (Greater)
- Group Account Director - Experiential Agency The Great & The Good £65000 - £70000 per annum, London
- Category Manager - Herbs, Spices & Ready Mixes McCormick Ltd £ Competitive + Benefits , Haddenham, Aylesbury
- Account Director The Great & The Good £45000 - £50000 per annum, West End