Samsung loses 39% profit reason seems to be iPhone 6

4/30/2015 Afnan Ali Awan , Apple , iPhone , Sales , Samsung 0 Comments

On Wednesday Samsung reported net profit of 4.63 trillion won (4.35 billion) for the first quarter which is from January to March. That is approximately 39% drop from it's last year's quarter net profit of 7.39 trillion. Most of the profit drop comes from the Samsung Mobile Division which reported 2.74 trillion won ($2.5 billion) in the first quarter of 2015 versus 6.43 trillion won in the first quarter of 2014. 

Samsung reported year-over-year profit loss but Samsung earning release also announced quarter-over-quarter improvement and Samsung mobile division also reported increased sales of middle-end smartphones including smartphones from the Galaxy A series. Samsung hasn't yet reported it's smartphone sales but according to analysts Samsung sold 83.2 million smartphones during the first quarter of 2015 versus Apple sold 61.2 million iPhones.

Samsung continued to hold the title of the world's largest smartphones maker due the high number of sales. But most of the sales were from low-end smartphones not from from the high-end ones, causing year-over-year profit drop. Some analyst believe that Samsung's profit loss is due to introduction of Apple iPhone 6 and the Apple 6 Plus with more larger display. Apple made a very smart move by introducing iPhones with larger screen size, and Apple has got successful in capturing those customer who were looking for bigger screen smartphones. 

Samsung is expecting increase profits during the second quarter probably because of the global launch of the company's new flagships the Samsung Galaxy S6 and Samsung S6 Edge and the company has also told that the demand for the Samsung Galaxy S6 edge is pretty high but due to limited supplies it will have limited sales.

Source : Mac Rumors