Samsung faces the dangerous information: gross sales of its excessive-finish telephones are sliding
Confirming its personal estimates from earlier this month, Samsung introduced tonight that it accrued an working revenue of $three.9 billion in Q3. That is not a nasty haul for many corporations within the July to September interval, however final yr Samsung proudly celebrated a report revenue of $9.6 billion and now it is right down to lower than half that. Now the corporate is breaking down the explanations behind the drop, and every part begins with the flagship Galaxy S smartphones. Reuters notes that telephones drove its progress during the last couple of years, however income in that space dropped from 6.7 trillion Korean gained final yr, to 1.seventy five trillion in the identical interval this yr.
That drop got here because of worth cuts for older telephones and “declined shipments” of excessive-finish fashions. Even barely greater gross sales of midrange smartphones apparently weren’t sufficient to proper the ship, and the Galaxy Notice four hasn’t been on sale lengthy sufficient to contribute. Worse, the telephone gross sales have an impact throughout the corporate for its show, reminiscence and CPU companies. It expects to promote extra Extremely HD and curved TVs to shut out 2014, however buyers will probably be extra serious about the way it responds to cheaper Chinese language telephone producers.