The stiff competition on smartphones is breathing down Samsung's neck. The Koreans reported declining earnings for the second consecutive quarter. In the first quarter, turnover was around 53 trillion won, according to preliminary estimates released today, the equivalent of 36,6 billion euros at current exchange rates, a level practically unchanged compared to the same period a year earlier ( 52.870 billion won).
Operating profits, on the other hand, at 8.400 billion won (5,8 billion euros) recorded a decrease of 4,3 percent, again on an annual basis.
“They are falling as margins on smartphones weaken and sales growth slows due to increased competition,” said Yong Park, an analyst at Hyundai Securities.
Samsung, according to data provided by the research firm Gartner, is the leading global manufacturer of mobile phones and smartphones. On the latter – where it has just launched the new Galaxy S5 – it holds 31 percent of the global market with 300 million devices sold in 2013, followed by Apple with 150 million of its iPhones (15,6%). But there is also growing competition from mid-range models, particularly from Chinese manufacturers such as Huawei, forcing Samsung into increasing marketing spending.
