The Drum Awards for Marketing - Extended Deadline

-d -h -min -sec

Samsung Samsung Galaxy

Marketing splurge contributes to 20% Samsung profits dip

Author

By John Glenday, Reporter

July 31, 2014 | 1 min read

Profits at South Korean technology giant Samsung have slid by 20 per cent over the second quarter after the manufacturer weathered a dip in smartphone sales combined with a strengthening of the South Korean Won and ‘escalating’ marketing spend.

The technology goods juggernaut posted a net profit of 6.25tn Won in the April-June period, down from the 7.77tn it received a year ago, a 17 per cent quarter on quarter fall.

In a statement Samsung said: “The second quarter was affected by several factors including the slow global sales of smartphones and tablets and escalating marketing expenditure to reduce inventory.

“Samsung expects to see its sales of mobile devices increase with the rollout of flagship products and new models, but profitability may suffer due to a heated race over price and product specifications.”

Samsung has been hit hard by a strengthening home currency, which it estimates has cost it 500bn won in lost revenue.

Samsung Samsung Galaxy

More from Samsung

View all

Trending

Industry insights

View all
Add your own content +