Samsung Announces 64% Drop in Mobile Profits

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Posted January 29, 2015 at 6:22am by iClarified

Samsung has reported its earnings for the fourth quarter of 2014 announcing a 36% drop in profits year-over-year and a 64% drop in profits from its mobile division.

The company generated 52.73 trillion won in revenue in Q4 and profits of 5.29 trillion won ($4.84 billion). That's down from 59.28 trillion and 8.31 trillion won in Q4 2013. Earnings for its mobile division declined for the fifth consecutive quarter due to increased competition from Apple and other smartphone manufacturers such as Xiaomi.

One highlight from Samsung's earnings was the performance of its semiconductor division. Its profit was 2.7 trillion won, the highest its been in over four years. The latest rumors have the company making 75% of A9 chips for future Apple devices.

Samsung says that looking ahead to 2015, earnings for components are expected to be static, due to slow seasonality across the IT industry. During this time, the company plans to focus on ramping up the volume of the System LSI Business’ 14-nanometer process, while also focusing on improving the Display Panel segment’s premium product offerings.

In regards to its ailing mobile business, Samsung says it will "focus on recovery by differentiating its mobile devices using new materials and designs, while also more efficiently managing costs through, among others, streamlining product line-ups." Recent reports have suggested that Samsung might try to differentiate itself with technology that is difficult for its competitors to replicate such as flexible displays and edge displays.

Samsung's profits pale compared to Apple's which set a new record. The company posted quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share.

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Samsung Announces 64% Drop in Mobile Profits

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gamerscul9870 - February 17, 2015 at 11:20am

And guess how that works out, making loop pay, yet another Apple idea copied. That's their strategy, if they can't beat them, mock them and sometimes copy them.

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Pretender - January 30, 2015 at 10:23pm

Samsung has one problem that they don't sell their smartphones like Apple does , in store and unlocked and ssmiling face. Then again they don't need to cause iphones designed and produced by samsung!?

gamerscul9870 - January 30, 2015 at 10:26pm

There is one in best buy, what they can't get right is actually coming up with new things other than dragging the same old shit that worked the same on Apple devices. The only marketing Galaxy ever focused on that mattered was big touch screeen, now they just follow Apple in which most their profits go to them and paid damages in lawsuits.

asdad - January 30, 2015 at 4:06pm

That's expected since there are alot of other Android devices out there that either are cheaper or have more quality/hardware features than theirs.... Like in some places Asus Zen Android phones are selling pretty well.... But what if all android based products are combined as a whole?

Vang - January 29, 2015 at 10:09pm

Just get a iPhone. Problems solved. Never looked back. Where u at? Where u at? I can't see ya!!!

Jon Snow - January 29, 2015 at 6:02pm

I work about 8 hours a day and make enough money in that time to buy 17 Apple 6S phones at full price no carrier discount.

iH8Samesung - January 29, 2015 at 5:17pm

It's the "NEXT BIG DROP". Bravo Samesung. BRAVO!!!

Dan - January 29, 2015 at 6:07pm

Haha, that's funny, I like the way you put it

ok now - January 29, 2015 at 3:48pm

how unfortunate

{Anthony} - January 29, 2015 at 3:19pm

I'm not the type to kick a guy when he's down... so... No worries Samsung, you will sell plenty of fridges, or conductors or something............. #AppleNation

Luciano - January 29, 2015 at 2:23pm

I agree Samsung spent so much $$ adversing against Apple products . Not focusing on their products . When you always put another products down not proving U are better .i used to love Samsung products from all my appliances replaced all of them with LG love it .never buy Samsung again

gamerscul9870 - January 29, 2015 at 9:20pm

Lg for home appliances, Apple for mobile uses and homekit things. Couldn't be happier.

gamerscul9870 - January 29, 2015 at 11:18am

That's what happens when you put all that gamble in those ads. For shame, wannabe copy cat.

Peter S - January 29, 2015 at 8:58am

They should do what apple do and not pay propper tax.

me_salman148 - January 29, 2015 at 8:41am

Where the hell BARKING SAMSUCK fan boys gone?

Amir - January 29, 2015 at 7:26am

I used to be big Samsung fan, phone, TV, lap top, appliances and everything Samsung. But I realized that Samsung products are only good for 6 month, after that u gotta thro them to garbage. Cheap quality, phone kept freezing, apps won't update because software is not upto the date and .....etc. it's the wake up time for Samsung to increase those product's quality

wow! - January 29, 2015 at 3:05pm

You know samsung makes iphone most inportant parts like lcd and A chips.

iAmMe - January 30, 2015 at 2:33pm

LOL! Just because I asked somebody to print my report for me doesn't mean he gets credit for making it. You do know that the chips you are talking about are designed by apple right? You didn't think Samsung designed it themselves, or do you? Poor guy!

Aik - January 29, 2015 at 7:23am

Amazing numbers and I hope the cheap copy cats Samsung will try n focus on their tv's n others

iAmMe - January 30, 2015 at 2:35pm

Even their TVs suck. I went to an appliance store one time to buy a new TV but then I saw lots of Samsung SmartTVs in line for warranty claims. Tsk tsk!

e59485c - January 29, 2015 at 7:19am

BAM! GOT iPhoned!

Great! - January 29, 2015 at 7:10am

Samsung says they now want to differentiate their offerings. In other words, they haven't in the past! Yep, they just indirectly admitted to copying Apple.

iAmMe - January 30, 2015 at 2:37pm

Samsung copied apple and when Xiaomi tried to follow apple's style, Samsung thought it copied them. Lol.

King Rollo - January 29, 2015 at 7:10am

Best stick to making microwaves...

Great! - January 29, 2015 at 7:06am

Samsung fans' heads exploding. They can't comprehend how their beloved Samsung is losing money to Apple on the mobile front, yet needs Apple's business on the semiconductor front.

SimonSays - January 29, 2015 at 6:56am

It was only a matter of time before all of those blind Samsung owners realized they were spending money on a overhyped plastic POS phone with terrible resale value. Better late then never.

Apple Products Rule - January 29, 2015 at 1:01pm

I agree because the Samsung phones get hot and then slow down and everybody that has a Samsung Phone boasts about having amazing battery life and that I have a quad core processor when the phone uses all the cores because android is so bloated. They also boast about how amazing their camera is.

carrisco - January 29, 2015 at 6:25am

Ownership, courtesy of Apple. :)

Samsuck - January 29, 2015 at 11:04am

Copy cat will not last!