Samsung’s Q1 2015 profit slumps 39 percent, expects higher profit in Q2


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Samsung’s first quarter net profit slumped 39 percent, due to company’s shrinking mobile sales.

The company on Wednesday announced financial results for the first quarter ended on March 31, noting that the net profit fell down by 38.9 percent from a year earlier. Samsung reported net profit for Q1 to KRW 4.626 trillion ($4.34 billion), down from last year’s KRW 7.574 trillion.

Along with the 30 percent drop in operating income down to 5.98 trillion, sales also fell 12 percent to KRW 47.12 trillion in comparison to last year sales for the same quarter. Earlier this month, Samsung earnings guidance estimated that the first quarter consolidated revenues would reach approximately KRW 47.0 trillion with consolidated operating profit of approximately KRW 5.9 trillion.

The South Korean manufacturer did see some improvement in profit from its chip/ component division that supplies chips and displays for many electronics manufacturers, including Apple Inc. Other than that, the mobile division now accounts for 46 percent of the company’s overall operating profit, compared with the chip division’s 49 percent contribution.

Samsung recently launched the Galaxy S6 and S6 Edge smartphones at MWC. Now looking forward, the company expects record increase in second quarter profit with the global rollout of both the Galaxy S6 and S6 Edge.

In the second quarter, the company expects its overall earnings to increase compared to the previous quarter, despite an expected growth in marketing expenditures. With premium smartphone sales entering into full swing, the DS Division is expected to see demand in growth for its semiconductor products.


Author: Hitesh Arora

From making Gadget and Auto videos for TV and online media, this guy landed up in Tech Writing. He has his heart at the right place when it comes to finding deals online. You will always find him suggesting people which device to buy. Hitesh calls himself a TV buff, who loves cooking, eating, dancing, and sleeping. You can follow him on Twitter @hitesharoraa