By Tim Maytom
Samsung has issued a warning to investors that both revenues and operating profit for the 2014 saw sharp drops from the previous year.
The company has announced it expects sales of between ₩51 trillion to ₩53 trillion (£30-32bn), a drop of 12 per cent on last year, and profit of ₩5 trillion to ₩5.4 trillion (£3-3.2bn), a decrease of around 37 per cent on 2013′s figures.
The slump represents the first annual fall in profits for the company since 2011, although a slight boost in Q4 suggests that earnings may have at least stabilised in the short term, as the company continues to move away from its traditional markets and reposition itself as a connected device and wearables firm.
“A large part of the decline in figures has been poor performance in markets like China, where it is under increased competition and pressure from local brands like Xiaomi and OnePlus that are producing high-end devices for a fraction of the cost to the consumer,” said Marco Vermis, CEO of mobile monetisation firm Upstream.
“The battle is certainly not lost for Samsung. There is still an appetite for these top of the line devices in China, as research we …read more
Source:: Mobile App News