Samsung’s Earnings Guidance expects 60% fall in Q3 profits

Samsung is expecting a 60% drop in its operating profits for the Q3 of 2014.  The South Korean company said in its latest earnings guidance that it expects to record an operating profit of 4.1 trillion won ($3.8 billion) for the quarter ended September 30, a 59.7 percent drop from the year-ago quarter.


Consolidated revenues of approximately 47 trillion won also represented a 20 percent decline over the previous year’s third quarter total of 59.1 trillion. Sales fell about 20 percent as the biggest smartphone maker faces tough competition from rivals like Xiaomi and local vendors in in China and India.

Samsung has released ‘reference materials’ to address concerns about the current state of the company. The company is expected to have low sales this quarter owing to low sales of Samsung’s flagship device, Galaxy S5 and the company started selling the Galaxy Note 4 last month. Samsung reported a fall in profit in Q2 of 2014 and its mobile revenue also declined by 12% QoQ. It must be noted that this is just a earnings guidance from Samsung and not the actual earnings for Q3, 2014.


Author: Sneha Bokil

Sneha Bokil is a tech enthusiast and is currently using OnePlus 3T but she still treasures her Nokia N70 (M). You can follow her on Twitter @snehabokil and on Google+