Fourth quarter expected to show lower earnings for Samsung

Fourth quarter expected to show lower earnings for Samsung
Samsung continues to have some troubles financially. Reporting its earnings guidance for the fourth quarter, the manufacturer said that it expects to report operating profit of $4.5 billion, a drop of 37% from last year's operating profit of $7.2 billion. Revenue is expected to come in at $47.3 billion versus last year's $54 billion, a decline of 12%.

On a sequential basis, Samsung expects to report a slight gain from the third quarter. Operating profit in that period amounted to $3.7 billion with sales hitting $43.2 billion.

Samsung will announce its final fourth quarter numbers before this month is out. The company has been affected by declining smartphone profits, which has resulted in a forecast decline of 33% in the number of smartphone models that Samsung will offer this year

source: Samsung via AndroidCentral

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32 Comments

1. Kishin

Posts: 706; Member since: May 30, 2013

Hahahahah!...

9. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

That's due to chinese OEMs but that profit is still desirable for other Android OEMs. Sammy please stop flooding up again with E5, E7, A5, A7, Grand Max...all they have almost same specs.

16. The_Godfather

Posts: 196; Member since: Apr 26, 2012

hahahaha Sammy gonna come back with a bang. Just wait and watch. There is nothing to be worried about.

25. HansGoneInsane unregistered

Face reality. Samsung is NEVER EVER going to reach the results from 2011/2012 again. Why? Because they were only able to achieve such great business figures due to the lack of competition in the Android market. The Chinese manufacturers will take business away from Samsung. This is inevitable. HTC and Sony will also grow even though these two companies will rather stay smaller players in the market. Will Samsung disappear? NO! But they definitely will earn less money with smartphones in the future until a new balance within the market has been found. And there is literally nothing Samsung can do against it. They might be able to decrease the damage they take, but they will take damage.

27. mrochester

Posts: 1000; Member since: Aug 17, 2014

I called it years ago, Android will be the death of these companies. I've no idea how I can see that but these bigtime CEOs can't. Apple has exactly the right idea. We need a lot more Apple's in this world.

2. Industriality

Posts: 131; Member since: Sep 08, 2014

Stop fllooding market with s**tty phones maybe ?

10. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Yea, as if Moto and other fan-favorite vendors soaking in trillions of profit.

3. shamrock

Posts: 75; Member since: Mar 29, 2013

may be this is the push that Samsung needed to focus more on consumer needs. Let's hope they have learned something from this.

28. mrochester

Posts: 1000; Member since: Aug 17, 2014

Exactly. Samsung really needs to start giving us reasons to buy their phones. Stepping away from Android is their most pressing and urgent requirement and delivering a substantially better OS and ecosystem so as to effectively compete against Apple.

4. Kruze

Posts: 1285; Member since: Dec 30, 2014

Yup, Samsung should stop flooding the market with their crappy Grand Ace Neo Quattro Young Mega Style Plus Max.

29. Jillsandwich

Posts: 63; Member since: Oct 24, 2011

You forgot Turbo Championship Edition

5. Cicero

Posts: 1133; Member since: Jan 22, 2014

Look at the numbers folks! Still desirable for every Android manufacturer. I can't see for now the winning moves from Samsung part. Wait and see.

6. tiara6918

Posts: 2263; Member since: Apr 26, 2012

as long as apple exists, they can't be number one in the smartphone industry. apple has so many sheeps and loyalists while samsung has very few loyal customers

23. Neros

Posts: 1016; Member since: Dec 19, 2014

Very few loyal customers? If millions are regarded as few then yes.

30. mrochester

Posts: 1000; Member since: Aug 17, 2014

They aren't loyal though. Samsung doesn't give customers any reason to stick with their products. Apple does.

7. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

In future Samsung would probably exit the smartphone market and sell other electronic stuff instead. Not a single smartphone in this year CES 2015 has given us the hint of it

12. livyatan

Posts: 867; Member since: Jun 19, 2013

..you just won the most idiotic comment of the year so far.

14. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

every conglomorate company in the past would do so, Hitachi, Fujitsu, Toshiba has given the example simply because they lost their focus No one love to buy a phone with a washing machine logo on the back.

17. The_Godfather

Posts: 196; Member since: Apr 26, 2012

WTF are you talking about mate? You don't know anything about tech and only know one Chinese copy cat company XIaomi which will be banned soon. Stop being ignorant and comment sensibly.

26. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Really? Because 82% of Samsung smartphone users are happy which represnets way more than the 80% of people happy with iPhone.Apple sold 150M smartphones for 2013, while Samsung sold 350M. @ models sold 150M+ by thmselves while Apple had 4 selling models. No one cares that Samsung makes other products. LG and Sony make other products too.

8. willytbk

Posts: 252; Member since: Aug 15, 2012

although the number is higher compared to other manufacturers, but for a company, decline in sales or profits are not good, not not good at all. Because they are here, to make money.

11. AlikMalix unregistered

You know what, maybe Samsung should make even more often releases - this strategy seems to be working for them so far, oh wait. On a serious Note (pun intended) why not concentrate your best on the Note series - phablet a is where Samsung pushed theirs good stuff (s-pen) battery, phablet market overall was realized with Note). And just stop, stop with a weekly-new-design-but-still-the-same flood of phones - I don't think anyone cares. We need competition to my brand (Apple) to keep them on their toes - Samsung seems to be the only capable.

13. livyatan

Posts: 867; Member since: Jun 19, 2013

Interesting how even the author is making it sound as if Samsung continued the downward curve , while it actually had $1.5 BILLION INCREASE IN PROFITS AND HIGHER REVENUE compared to previous quarter

15. iushnt

Posts: 3105; Member since: Feb 06, 2013

and companies like HTC dream for $1.5 billion profit

20. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

When you compare whole year combined to whole last year combined they fell and lost a lot of profit. Dont be an idiot.

21. TAMARETTE

Posts: 182; Member since: Jun 15, 2014

You have a point. One January 6 Phonearena posted an article on HTC profits with this title: HTC reports its first sales growth in three years plus, owing to its mid-range offerings. However, when reading the article, the profit was not yearly, it was sequential (4th quarter earnings compared to third quarter). Much was made of HTC's net income for the quarter (14.7 million dollar) In the last sentence they mentioned that HTC actually had lower sales and profits in year-on earnings. Contrast this to how PA worded the Samsung article we are reading now: Fourth quarter expected to show lower earnings for Samsung. The article reluctantly mentions that Samsung actually had what PA characterized as a "slight gain" in profits in the Fourth Quarter (3.7 BILLION earnings profit) Apparently, PA is more impressed by HTC's 14.7 million dollar profit for Q4 2014 than Samsung's.

24. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

year over year, comparing Q4, HTC was up and Samsung was down. They're going in different directions.

31. TAMARETTE

Posts: 182; Member since: Jun 15, 2014

You r reading comprehension leaves a lot to be desired. HTC was down year over year PERIOD. And making 14 million dollars profit for a quarter is ridiculously sad. Now it's easy to see how PA gets away with things like this if their readers are this clueless.

18. emitchell4luv

Posts: 24; Member since: Jun 21, 2012

they should learn to produce more midrange and less high pricey phone, that differ in screen resolution.

19. emitchell4luv

Posts: 24; Member since: Jun 21, 2012

they should learn to produce more midrange and less high pricey phone, that differ in screen resolution.

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