Samsung Suffers Profit Slip
Apple (NASDAQ:AAPL) arch-rival Samsung Electronics (SSNLF.PK) posted its first profit decline in nine quarters, according to pre-earnings guidance for the fourth quarter of 2013 released by the company on Tuesday.
The South Korea-based company said it posted an operating profit of approximately 8.3 trillion won and saw sales of 59 trillion won in the final quarter of 2013.
According to a report from Bloomberg, that’s the first drop in profit Samsung has seen since third-quarter 2011. In the fourth quarter of 2013, the company posted a profit of 9 trillion won. Bloomberg cited increased competition from Apple with the release of the iPhone 5C and iPhone 5S in September, as well as pressure from Chinese companies turning out cheap, low-end devices as reasons for Samsung’s decline.
Analysts surveyed by Bloomberg expected Samsung to post an operating profit of 10 trillion won. The company’s fourth-quarter sales represented an increase of just 5.3 percent, the slowest growth in sales the company has posted since 2011.
Despite the hit taken from Apple, Samsung isn’t without a retaliation plan for 2014. According to the latest research from Gartner, the tablet market is expected to grow 54 percent in 2014, and Samsung will take advantage of the increased interest in tablets by flooding the market with various devices in multiple sizes, Taiwan-based DigiTimes reported this week.