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Financial Results Samsung

Samsung hopes wearable devices and World Cup boosts sales of TV and smartphones after reporting fall in profit

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By Ishbel Macleod, PR and social media consultant

April 29, 2014 | 2 min read

Samsung reported that operating profit from January to March fell 3.3 per cent from a year earlier to 8.5 trillion won (£4.87bn), but suggests that the period is ‘traditionally slow’ for sales.

The Korea-based technology giant reported that profit in the mobile division was 6.43 trillion won, down 1.2 per cent from 6.51 trillion won in the same period in 2013.

However, the company predicts that things will pick up in the next quarter, with orders for display panels that are used for premium smartphones and TVs expected to increase, as new mobile devices are rolled out into the market and as consumers look forward to the upcoming World Cup in Brazil.

Samsung also stated “The outlook for household appliances will also pick up on seasonal demand for air conditioners, as well as orders for high-end TVs based on the World Cup effect.”

“While developed markets are expected to lead global economic recovery, macroeconomic uncertainties, such as currency fluctuation in emerging markets due to QE tapering in the US, are expected to continue in 2014,” said Robert Yi, senior vice president and head of investor relations.

“We expect our overall earnings to improve starting from the second quarter, driven by improvements in the display panel segment and the consumer electronics division in conjunction with steady growth momentum in mobile and memory businesses.”

Samsung revealed that it is planning to expand into new product categories such as wearable devices, as well as having plans to strengthen its B2B business footprint through Knox.

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