* sorzrranta wknd. Spuzzon ‘Business - Samsung lags 60% fall in profit INSPIRED Khalegi Times type keyword. Search Nation Entertainment Home Business Gold/Forex News Sport KT World Business Home > Companies ° 7 sao sone Samsung flags 60% fall in profit (AFP) / 8 October 2014, Key smartphone sector continues to struggle in the face of increased competition ‘Seoul: Samsung Electronics on Tuesday flagged a near 6o per eent on-vear plunge in its third (quarter operating profi, as its key smartphone sector continued to strugale inthe face of increased competition Operating profit for the July-September period was estimated at $3.8 billion, down 59.6 per cent fom the third quarter last year, the company sai, Salee were estimated at 47 tilion won, dawn 20.4 per cent from 2013, While smartphone shipments increased slightly, “operating margin deelined due to increased marketing expenditures and a lowered average selling price, driven by reduced proportional shipments of high-end models coupled with price decreases for older smartphone models’, the South Korean electronics giant said in an explanatory note ‘The company warned that uncertainty in the mobile seetor would carry through into the fourth quarter, although it promised a new line-up of top-end smartphones featuring "new materials and innovative designs” {In July, Samsung had reported a 20 per cent drop in net profit forthe second quarter, and its shares are sitting ata two-year low. The share price actualy rose by as much as three percent in early trading after the profit warning, and finally closed the day up 0.96 per cent at 1.162 milion wan, “Expectations have been lowered to a peint where a four trillion won operating profit would relieve investors” explained Lee Seung-woo, an analyst with IBK Securities in Seoul. The mobile market, ‘which hasbeen the key driver of Samsung profits in recent yeas, has become increasingly saturated, ‘while competition has intensified from cheaper Chinese handset makers such as Huawei and Lenovo. ‘The worlds largest smartphone maker has a diverse product line ranging from memory chips to home appliances, but more than half of its profits are generated by mobile devices. The explanatory note said shipments and profits in the company’s display panel business had also fallen in the third ‘quarter due to weaker demand in the mobile sector. It did not provide a breakdown of profit fstimates by businesses, but noted the “improved” performance ofits memary chip unt in the third ‘quarter, Samsung said on Monday that it planned to invest 156 tillio won to build a high-toeh chip-making feiityin the northwestern city of Pyonigtack, Demand for memory chips is expected to remain robust, and the new facility — scheduled to begin operations in 2017 — is seen as a strategic cffort to offset further profit falls in the smartphone segment. Samsung's smartphone profits have been hit at both ends ofthe spectrum. Its presiousy all-conquering flagship Galaxy series has come under renewed pressure with the release ofthe popular Phone 6 from arch-rwval Apple, which has also challenged Sameung’s dominance of the oversized smartphone market with the introduction ofthe larger-screen iPhone 6 Pus. Inthe low to mid-range smartphone segment, the challenge has come from Chinese handset makers who have begun to make substantial inroads into Samsung's market share. According to International Data Corp. reeord-high 205.3 million smartphones were shipped worldwide in the second quarter. Samsung remained the world’s top vendor, moving 74 million handsets, but saw its overall macket ‘Share sip seven per centage points to 25.2 percent, while China's Huawei neatly doubled its GakY KTMobile ePaper COMPETITIONS SUBSCRIBE 3G Magazines Sites Classifieds Opinion & Analysis si Ke stoves ftv seo or nian ss Seumberer was a winner on Wall “The Rl etn the Bovespa sd the* rozraoa shipments from the same quarter a yeat ago, Samsung said on Tuesday it would bring out anew Senes of mid- fo loweend smartphones inthe fourth quarter “with strong competitive positioning on both hardware specifications and price” ‘Business - Samsung lags 60% fallin prot Last month, Samsung brought forward the launch ofits oversized Galaxy Note 4 smartphone and igotitinto Chinese and South Korean stores ahead ofits sae in 140 olher countries. It was the first ‘ime ¢ flagship Samaung product had gone on sale in China ahead of other markets. ‘We are temporarily going through a difficult business situation,” Lee Don-Joo, head of sales and smarting for Samsung's mobile unit, told reporters at the Note 4 launch. Adsby Gomgle x NE neve Pt Pre nsine suis Comments 2 Commons Live Now, an app for UAE legislations Indian expats usher in fostival of lights, today - Khaleej Times. ~ Ie there an english version too? Only found the arabic version on playstore. — Happy Divalto everyone Enjoy and be safe, Dubai welcomes a starry Happy New Year Sukh Sagar: The most delectable culinary = Khaleej Times stop - Khalee| Times, . = Mustafa Khan ‘ove this paid advertising. Such trip cat onlybe written by "staff" News Pages E-Leisure Subscriptions KT Apps KT Social KT ation eta ities Rr Newpeper ‘hone Goes abortus Reon eters Wd ePaper td Faster wate tae Intentions piaion Indlge Andesid Teter Avett with os ee Features Inept ving Blstery teatgrnn Privacy Fey Spot Live Weather Diversions ‘Samsun Bad ass Site alop Expresions Windows