Waning Galaxy sales see Samsung’s quarterly profits slump by 60%
Samsung’s accountants have been left wincing after the South Korean smartphone giant announced its quarterly operating profits had collapsed by 60 per cent in the wake of reduced growth of its flagship galaxy devices.
The electronics firm was expected to have posted an operating income of 5.2tn won for the three months to September but this figure is now put at 4.1th won.
Such numbers illustrate the pressure Samsung has come under in recent months from a pincer movement composed of Apple at the high-end of the market and a clutch of Chinese players including Xiaomi and Lenovo which are developing increasingly sophisticated mid-range devices.
This has seen Galaxy handsets steadily lose market share to lower cost handsets which now also boast large high resolution screens and a packed feature set.
In a statement Samsung said: “Smartphone shipments increased marginally amid intense competition. However, the operating margin declined due to increased marketing expenditure and lowered average selling price."
To reinvigorate its business Samsung has said it is readying a new ‘smartphone line-up featuring new materials and innovative designs, as well as a series of new mid-to-low end smartphones.’