Marketing costs contribute to Samsung's first fall in profits since 2011
Samsung has seen an unbroken period of growing profits come to a juddering halt after increased competition in the smartphone and tablet markets saw its fourth quarter profits decline from the previous quarter for the first time in over two years.
The South Korean giant registered net profits of $6.8bn for the period, 11 per cent below that recorded in the third quarter of 2013 – although this was still 4 per cent higher year-on-year.
Samsung attributes the profit dip to increased marketing costs, one-off expenses deriving from employee bonuses and a strong won. It is also facing tougher competition from Apple as it muscles in on the market for bigger screens, a domain Samsung previously called its own.
The tech firms IT and mobile communications division also suffered a fall over the period, reducing from 6.7 trillion won in the third quarter to 5.5 trillion won in the fourth.