Samsung sees its lowest revenue in two years as smartphone gross sales languish
When Samsung took the time to replace buyers forward of its upcoming quarterly earnings report, it warned ‘weak demand’ for telephones and an elevated advertising spend might hit the corporate exhausting. That report hit at present, and it is as bleak as the corporate anticipated. In its second quarter, Samsung posted revenue of 6.25 trillion gained ($6.1 billion), down from 7.seventy seven trillion gained ($6.ninety six billion) final yr, its lowest quarterly revenue in two years. Smartphone gross sales contributed nearly all of its income, however the Samsung’s flagship telephone, the Galaxy S5, languished because the iPhone continues to fly of cabinets and Chinese language manufacturers reduce immediately into its low-finish enterprise.
As anticipated, Samsung blames the worldwide slowdown of cellular gross sales and a robust gained for its poor second quarter, noting that it spent extra on advertising to shift a backlog of units it could not promote. And as fewer telephones hit the market, its chip enterprise additionally took successful. With all of these elements weighing heavy on its shoulders, Samsung says that the second half of 2014 will “stay a problem” as international competitors “intensifies.” It expects cellular gross sales to develop within the subsequent quarter, helped by the rollout of latest flagship merchandise, which doubtless consists of the Galaxy Observe four, however warns it is going to be even more durable to show gross sales into revenue, as the typical value of smartphones continues to fall.
With Apple rumored to be engaged on a much bigger iPhone and its rivals consuming into its market share in Asia, execs are properly conscious that the corporate has its work minimize out if it is to return to progress in its subsequent quarter. Samsung believes introducing new applied sciences and adopting new designs will assist, as will concentrating on a smaller variety of merchandise, suggesting we might see an entire new Samsung emerge within the coming months.
- Key specs
- <a href=”http://www.engadget.com/merchandise/samsung/galaxy/s5/” title=”Samsung Galaxy S5 evaluations” goal=”_blank”> Critiques • 22 </a>
- Sort Smartphone
- Working system Android (KitKat [4.4])
- Display measurement 5.1 inches
- Inner reminiscence sixteen GB
- Carriers (US) AT&T
- Dimensions 5.fifty nine x 2.eighty five x zero.32 in
- Weight 5.eleven oz
- Launched 2014-04-eleven