Samsung's 4Q profit hit by slowing mobile growth

Published on NewsOK Modified: January 6, 2014 at 10:13 pm •  Published: January 6, 2014
Advertisement
;

SEOUL, South Korea (AP) — Quarterly earnings at Samsung Electronics Co. fell for the first time in two years as sales of smartphones and tablets slowed in developed countries.

The South Korean company Tuesday estimated an operating profit of 8.3 trillion won ($7.8 billion) for the final three months of 2013, a 6 percent decline over a year earlier. The result was lower than forecast by analysts and an 18 percent drop from the third quarter. Sales rose 5 percent to 59 trillion won ($55.4 billion).

Since the last quarter of 2011, Samsung's operating income has increased every quarter, peaking at 10.2 trillion won in the July-September period. The fourth quarter performance shows that explosive growth in Samsung's lucrative mobile device business has come to a halt.

It will release its net profit result for the fourth quarter later this month.

Analysts said Samsung's profit fell because its businesses supplying advanced displays and chips for iPhones and Galaxy smartphones posted smaller profit. They said Samsung's smartphone business making Galaxy smartphones and Galaxy Gear smart watches was not as lucrative as before because of higher marketing costs.



Trending Now


AROUND THE WEB

  1. 1
    Report: Caron Butler close to two-year deal with Detroit Pistons
  2. 2
    It’s harder to be a poor student in the U.S. than in Russia
  3. 3
    Man fatally stabbed in west Tulsa early Sunday
  4. 4
    How brain imaging can be used to predict the stock market
  5. 5
    Bridenstine tours Fort Sill, satisfied with facility's transparency
+ show more