Sunday, November 23, 2014   

Samsung Q1 net profit rises
(04-29 11:40)

Samsung Electronics reported Tuesday its net profit had risen 5.9 percent year-on-year in the first quarter to 7.57 trillion won but operating profit declined for a second straight quarter on slowing smartphone revenue.
Alarm bells have been sounding for a while over Samsung's reliance on smartphone sales in mature markets such as Europe and the United States, and increasingly competitive emerging markets such as China, AFP reports.
The world's largest smartphone maker has a diverse product line ranging from memory chips to home appliances, but more than half its profits are generated by mobile devices.
This month saw the global roll-out of the latest version of its flagship Galaxy series smartphone, the S5, whose performance will be closely watched over the coming months.
While reviews have rated the S5 a top-class product, they note that it offers little in the way of real innovation that would set it apart from previous versions and models offered by competitors such as Apple.
Samsung made margin concessions with the S5, launching it at a slightly lower price than its predecessor the S4 and throwing in a premium software bundle estimated at more than US$500.
The strategy appeared to have met with some success, as the net profit figure released on Tuesday beat most analyst estimates.
However, operating profit stood at 8.49 trillion won for the January-March period, down 3.3 percent year on year and following a 6.0 percent decline in the fourth quarter.
Overall sales in the first three months of the year inched up 1.53 percent to 53.7 trillion won, but were down 2.5 percent for the mobile business unit.
The firm's Seoul-listed shares were down 1.66 percent in the morning, while the broader KOSPI market was 0.22 percent lower.
Samsung on Tuesday acknowledged it was faced with a tough road ahead as demand would remain sluggish in the second quarter.   
Other Business breaking news:
PBOC to inject liquidity if necessary (11-21 19:03)
China cuts interest rates (11-21 18:41)
Indexes track Connect (11-21 17:35)
ECB chief says will ramp up asset purchases 'without delay' (11-21 17:09)
European stocks rise at open (11-21 16:23)
Hang Seng ends higher (11-21 16:22)
Nikkei closes higher (11-21 15:03)
Nikkei down by break (11-21 11:03)
Taiwan export orders hit record high on iPhone 6 demand (11-20 19:08)
Japan exports up 9.6 percent in October (11-20 18:41)

More breaking news >>

© 2014 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts

 


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2014, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.