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Samsung releases its Q3 2014 financial report - sells slightly more phones, but revenue is way down

Posted: , by Peter K.

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Samsung releases its Q3 2014 financial report - sells slightly more phones, but revenue is way down
When it rains, it pours. This old saying perfectly suits Samsung's current state of financial affairs. The largest and still not dethroned smartphone maker in the world has been having a lot of troubles over the past few quarters, experiencing both diminishing sales and tumbling earnings. In the beginning of October, for example, it was predicted that the giant from South Korea will once again disappoint and will report unsatisfactory financial results for Q3 2014. The financial report for the quarter is already out, and just as it was expected, Samsung once again proclaims a lot of trouble in paradise.

Despite selling more smartphones in Q3 than in Q2 2014, the revenue of Samsung's mobile division is still keeping its downward course and is bringing the whole corporation down with itself. Samsung's smartphone business brought less earnings (23.52 trillion won/$22.3 billion) in Q3 than in Q2 (27.51 trillion won/$26.08 billion), a 15% decline. As a comparison, back in Q3 2013 Samsung brought 35.66 trillion won ($33.87 billion) home. The operating profits of the mobile division are also 2.67 trillion won down.

The harsh competition was the main reason for Samsung's disappointing sales 

Despite shipping slightly more smartphones in Q3 than in Q2, the giant revealed it got hold of 47.45 trillion won ($45 billion) in revenue, which is way less than the 59.08 trillion won ($56 billion) it brought home in Q3 2013. The net profit is also tumbling down – the last quarter filled Samsung's pockets with 4.85 trillion won ($4.6 billion), way less than the 7.19 trillion won ($6.8 billion) it acquired just a year ago. The gross profits of the company for Q3 2014, on the other hand, stand at 16.74 trillion won ($15.9 billion), yet another decline over last year, when Sammy reported higher gross profits.

The Galaxy Note 4 powerhouse has the potential to help Samsung's mobile division score a turnaround, but we are yet to see if the phablet will actually aid the company's financial situation. Preliminary data shows that in is not performing better on its home market than the Galaxy Note 3 did last year. In the meantime, Xiaomi and the rest of the local China-based contenders will surely continue to give Sammy a hard time.

Samsung releases its Q3 2014 financial report - sells slightly more phones, but revenue is way down

source: Samsung via SammyHub

48 Comments
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posted on 30 Oct 2014, 03:30 9

1. Settings (Posts: 1715; Member since: 02 Jul 2014)


Samsung is the best mobile phone company. They will never go down!

posted on 30 Oct 2014, 03:46 15

4. ishan.heru (Posts: 69; Member since: 31 Aug 2014)


In this world no company is the best. The one that can cope up with the trending world and adjust itself accordingly will live or it will die. Nokia mobile division is the best example of this !!

posted on 30 Oct 2014, 04:44 1

16. Settings (Posts: 1715; Member since: 02 Jul 2014)


Nokia mobile will be back soon. But for the mean time lets dip in Samsung sheet.

posted on 30 Oct 2014, 07:53

38. rd_nest (Posts: 1598; Member since: 06 Jun 2010)


You guys don't learn, do you?
Nokia was a 1-trick pony. Just mobiles in an uncompetitive market. Who was Nokia's competition 10-yrs back? The moment they faced a tough challenge, they were doomed.

posted on 30 Oct 2014, 04:02 14

10. jcdz89 (Posts: 78; Member since: 01 Mar 2013)


Make more and more ugly phones then they can continue the trend...

posted on 30 Oct 2014, 04:56 2

19. Finalflash (Posts: 3186; Member since: 23 Jul 2013)


Well, nothing motivates these corporate A-holes than losing money. They will likely come back stronger and better from this, unlike some other companies that just burned down.

posted on 30 Oct 2014, 07:48

34. Settings (Posts: 1715; Member since: 02 Jul 2014)


Samsung now hitting the bell curve. It will be and so other companies. Its time for them to restrategize and do an overhaul of their phone designs or UI or something. People are tired of the same design language too. It never hurts to breathe anew.

posted on 30 Oct 2014, 04:26 3

12. Martin_Cooper (Posts: 1529; Member since: 30 Jul 2013)


Replace that with NOKIA 7 years ago. Looks like people don't understand even after thousands of years that history repeats its self. In one way or another.

posted on 30 Oct 2014, 04:47

17. Trex95 (Posts: 938; Member since: 03 Mar 2013)


I agree with you.

posted on 30 Oct 2014, 07:49

35. rd_nest (Posts: 1598; Member since: 06 Jun 2010)


Here's the deal, Nokia never ever had such revenue or profit. Even at this time, Samsung's profit were as big as Nokia's total revenue.

And Samsung is much more than just mobile. For all the so-called Chinese companies, how much money is these companies making? It's easy to grow when the company is small, the moment they start gaining focus and attention, it become very tough. You can only go by lowering the prices to a certain limit. How much LG, Sony, HTC made this Q?

"Law of diminishing Marginal Utility" - read it up, if you are not aware.

And change your name, you are not worthy to use such a name.

posted on 30 Oct 2014, 06:07 2

27. AnTuTu (Posts: 1580; Member since: 14 Oct 2012)


I think Sammy really need to work hard on their strategy to compete against Xiaomi & Huawei. These 2 r the biggest threat right now and also please change your damn designs as well :(

posted on 30 Oct 2014, 06:28 4

29. darkkjedii (Posts: 21997; Member since: 05 Feb 2011)


Actually they just need more customers like Apple has, instead of like you. A loud mouth that doesn't actually buy their stuff.

posted on 30 Oct 2014, 07:46 1

33. androidwindows (Posts: 193; Member since: 04 Oct 2014)


Why are you attacking him???

posted on 30 Oct 2014, 08:30 1

39. darkkjedii (Posts: 21997; Member since: 05 Feb 2011)


He attacks me constantly. He's nothing more than a loud mouth troll, point blank.

posted on 30 Oct 2014, 07:50 1

36. rd_nest (Posts: 1598; Member since: 06 Jun 2010)


Care to share how much Xiaomi & Huawei made this Q? How many billion of profit did they make??

posted on 30 Oct 2014, 06:46

31. engineer-1701d (unregistered)


They just dropped a bit because they dud but listen to us we want over haul of touch wiz and battery like turbo with great build

posted on 30 Oct 2014, 13:45

44. InspectorGadget80 (unregistered)


Not too mentioned their TV home appliances dept

posted on 30 Oct 2014, 14:19

45. Abdosama (Posts: 2; Member since: 30 Oct 2014)


Samsung is the WORST phonemaker in history (im not an apple fanboy);
they piss me off because their ads, phones and marketing dont respect our intelligence:
(AMOLEDS are the best display ever; buy them!!)
(lets make people pay $800 on a cheap plastic pebble that actually costs $6 to make)
(no FM radio on our newer phones; saves more manefacturing costs!)

they got what they deserve, i hope the trend continues and forces them to stop making phones

posted on 01 Nov 2014, 09:59

48. b1acktiger (Posts: 223; Member since: 19 May 2012)


never heard of any good things before Galaxy S success. Company is doing good doesn't mean they are good. Even we read so much unethical business practices from giants like Samsung and Apple.

posted on 30 Oct 2014, 03:45 2

2. HugoBarraCyanogenmod (Posts: 1219; Member since: 06 Jul 2014)


Looks like IM (mobile division) is the one who blame. Mind as well ditch it. competition is far more stiff than you think

posted on 30 Oct 2014, 04:28 1

13. Martin_Cooper (Posts: 1529; Member since: 30 Jul 2013)


If they ditch it they would loose a big margin of profits. Ye samsung has many divisions even makes things for the army but still it makes tens of billions from its mobile division. if they ditched it now when they are on the top that would mean they are beyond retarded.

posted on 30 Oct 2014, 03:45

3. sunday (Posts: 39; Member since: 15 Aug 2014)


They know what to do to come back. They will soon introduce. A series To takle those chIna guys but they should bring out TIZEN phones to the market bc people want to see something different.

posted on 30 Oct 2014, 04:30 2

14. Martin_Cooper (Posts: 1529; Member since: 30 Jul 2013)


A series? Like the A5 which costs 450$ for a 400cpu which can be found on a 150$ Motorola. Lol you made me laugh. They have NO IDEA how to fix their problems when they keep rolling out medium range phones OVERPRICED as hell.
http://gadgets.ndtv.com/mobiles/news/samsung-galaxy-a5-price-and-specs-tipped-by-retailer-ahead-of-launch-613044

posted on 30 Oct 2014, 05:04 1

20. MartinR (Posts: 53; Member since: 26 Jul 2012)


Pardon me, all media reported the CPU wrong. Its a Snapdragon 410 64Bit.
Which a nice midtier CPU, you really think that Samsung would bring a metal phone with a 2 year old CPU.

posted on 30 Oct 2014, 07:51

37. rd_nest (Posts: 1598; Member since: 06 Jun 2010)


Shut your mouth, if you don't know what you talking about. Morons like you reduce the IQ of the whole street.

posted on 30 Oct 2014, 03:49 2

5. Denco (Posts: 118; Member since: 25 Mar 2014)


Ups and downs are an integral part of life (and tech coys).

Thus every OEM would always have their time in sunshine and in the shadows.

But it's not falling that makes a winner; it's rising again.

As long as Samsung is ready to adjust to the reality of its situation and make changes where necessary, it can bounce back.

Funny though, that despite its troubling pains, Samsung is still the world's largest smartphone maker and still makes far much more revenue and profit than all its Android rivals combined.

And beyond its smartphone fame is its still profitable chip business.
For a company that is so highly diversified and multi-faceted like Samsung, decline in mobile phone revenue is only a temporary glitch.

That's the Korean giant's silver lining behind the clouds.

posted on 30 Oct 2014, 04:32

15. Martin_Cooper (Posts: 1529; Member since: 30 Jul 2013)


Ye I dont think they would get too much affected since they produce almost everything, Problem is they aint doing NOTHING to improve their phones. They rolling out A series phones which seem to be way overpriced when Xiaomi is kicking their ass in Asia with cheap value for money phones.

posted on 30 Oct 2014, 03:50 2

6. livyatan (Posts: 867; Member since: 19 Jun 2013)


Uh, poor Sammy.. Still poured by billions of dollars of actual profit.
Maybe he better go wipe his tears with 45 billion $ of cash he's got piled up.

Yes, the profits and revenues are down, but they are still both HUGE.

The market is maturing, Samsung is settling into its true position and that's the whole truth.

posted on 30 Oct 2014, 03:51 5

7. laughmi (banned) (Posts: 283; Member since: 28 Oct 2014)


Chinese OEMs will destroy Samsung and already dwindling HTC/Sony if they don't correct their pricing strategies in my opinion. Xiaomi and Huawei are already 3rd and 4th largest smartphone makers. I won't be surprised if next year or two they are top 2 smartphone manufacturers in the world!!

posted on 30 Oct 2014, 03:56 5

8. lazarus_26 (Posts: 9; Member since: 29 Sep 2014)


They should make a 10 minute commercial about this!

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