The Koreans are starting to lose ground. After three record-breaking quarters, Samsung is underperforming, with the first drop in operating profit in two years. In the preliminary data just released, the company indicated a turnover of 59 trillion won over the last three months of 2013, approximately 40,5 billion euros. A figure below the expectations of analysts, who expected 64 trillion won. Furthermore, even if the figure marks a growth of 5,24% on an annual basis, in comparison with the third quarter it shows a slight decrease to -0,1%.
Operating profit was 8300 trillion won (5,7 billion euros), down 6,1% year-on-year and 18,3% from the previous quarter. In the third quarter, however, operating profit jumped 26% year over year.
The company – points out the CNN – is facing growing competition from Apple, particularly in China. The iPhone manufacturer has in fact just signed an agreement with China Mobile, which manages an impressive 700 million users.
The pressure on Samsung is actually part of a broader industry trend, with margins declining and saturation growing. Taiwanese HTC is also suffering. Earlier in the week, the smartphone maker disclosed profits that were well below expectations.
