Friday, April 11, 2014

Samsung Profit Decline?

In two consecutive quarters , Samsung is projected to have declining profits . Similarly, as quoted PULSAonline via the BBC .

In the period from January to March , Samsung's operating profit reached 8.4 trillion usually Won ( 7.9 billion USD ) , is now decreased 4 % compared to the same period last year .

According to an analyst at Hyundai Securities , Young Park , Samsung's declining profit margins caused by the collapse of the smartphone market in addition to the slow rate of growth in this business .

In the smartphone market , the last few years Samsung Galaxy series rely on a variety of products that have become the biggest factor driving the growth of the South Korean vendors . But on the other hand , a number of competitors Samsung is also trying to take advantage in the same sector .

With declining profits , Samsung was said to need to take anticipatory measures , by reducing the cost reduction and marketing .

" This year, Samsung needs to do things such as reducing the cost of production and marketing , " says Greg Spirit , an analyst at HMC Investment and Securities .
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As is known , a number of rival Samsung , like Apple , HTC , and Chinese vendors such as Lenovo , ZTE , and Huawei is aggressively making efforts to increase their market share .

Impact, in addition to competition in the smartphone business will be increasingly fierce , the vendors were forced to reduce prices , which in turn will reduce their profit margins . It was of course done to reach many consumers .

Sources at the BBC website , the decline in profits experienced by Samsung , is considered as a challenge for the company to increase revenues amid a decline in the price of the smartphone .


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