Feature Article

May 01, 2014

Samsung Posts $8.2 Billion Profit in First Quarter

Samsung has released its first quarter earnings, posting a slight decline in its profit, according to Cnet.

The company posted a profit of $8.2 billion, a 3.3 percent decline over the same period a year ago. Despite the decline, the company actually did slightly better than analysts expected.

Samsung blamed global economic uncertainties for the decline, including currency fluctuations and quantitative easing in the U.S., but was optimistic about the next quarter. 

 “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,” Robert Yi, senior vice president head of investor relations for Samsung, said.

In the company statement, Samsung said that the first quarter of the year was typically slower. The company expects shipments of high-end displays for smartphones and TVs to pick up in the second quarter. In particular, Samsung expects more people to pick up new TVs to watch the World Cup in Brazil this summer, similar to how the Super Bowl in the U.S. helps sell high-end TVs. 

The company’s mobile division also buoyed Samsung, posting an operating profit of $6.2 billion, with strong sales of Samsung Galaxy S4 smartphones and Galaxy Note 3 Smartphones. The company also introduced the Galaxy S5 phone, and Samsung expects the phone to do well. The sales figures for the S5 were not factored in the latest earnings release.

Samsung will maintain its growth by concentrating its core businesses by differentiating its product line with V-NAND SSD chips, targeting both enterprise and consumer applications. The company also plans to expand into wearable devices and target the educational and B2B markets.

Image courtesy of Shutterstock.com

Edited by Maurice Nagle

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