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Samsung profits continued their decline in Q4 2014

Samsung Q4 2014 profit sales
Samsung experienced a significant drop in profits in the fourth quarter of 2014. Over the past nine months, profits went down 64 percent for Samsung Mobile.

Just one day after Apple announced a record profit of $18 billion over the fourth quarter of 2014, rivals from Samsung had to acknowledge a decline in profits for the the fourth consecutive quarter. The South Korean tech giant generated a profit of $4.9 billion during Q4 2014. Compared to the same period of the percent year, this marks a decline of 27 percent.

In the past 9 months, Samsung's mobile division diminished its profits by a whopping 64 percent. A few years ago, Samsung was at the top of the hill as the undisputed market leader in smartphones. Today the former champion is facing tough competition not only from traditional rival Apple, but from Chinese smartphone manufacturers as well. Xiaomi, Lenovo, and Huawei have taken over the lead in the China, the largest smartphone market on the globe. In just a year, Samsung has seen its market share in China reduced to 9% from 17%.

Financial analysts from the Wall Street Journal believe that Samsung will attempt to turn around the falling profits by launching the Galaxy S6 with an in-house Exynos chip. According to similar rumors, the real reason why Samsung is said to avoid using the Snapdragon 810 in its upcoming flagship has nothing to do with overheating issues. Instead, Samsung is said to reach for a better profit margin by using an in-house built chip.


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Mihai Andrici, 2015-01-31 (Update: 2015-01-31)