Samsung’ Mobile’s Q4 2014 Profit Down Nearly 40%
Samsung has reported its earnings for Q4 2014, in which the company has managed to make operating profit of 5.29 trillion won ($4.9 billion) for the quarter ended September 30, 2014, down 27% from 8.31 trillion won compared to the same quarter last year. It has reported net profit of 5.35 trillion won ($4.9 billion) on revenues of 52.73 trillion won ($48.6 billion), down 10% compared to the same quarter last year, up 11% quarter-on-quarter (QoQ).
In the mobile sector, it has reported revenues of 25.02 trillion won, up 6% compared to 23.52 trillion won in the previous quarter. Considering the whole financial year of 2014, sales in mobile sector is down by 21% and profits were down nearly 40% in IM compared to FY ’13. Revenue in Device Solutions (DS) Division increased due to solid demand for memory products and an increase in 20-nanometer mobile application processor (AP) supply, said the company.
IT & Mobile Communications (IM) Division recovered some earning due to increased sales of high-end products, such as the Galaxy Note 4, and more efficient management of marketing expenditures said Samsung. In IM Division it will focus on the successful implementation of its new product line-up strategy. It will move to LPDDR4 gradually and continue to migrate 20-nanometer process this year.
It will focus on recovery in the mobile phone sector in 2015 by differentiating its mobile devices using new materials and designs, more efficiently managing costs and streamlining product line-ups. It will also increase efficiency in mobile business through enhanced& R&D and marketing to increase profitability. In 2015 it expects continued growth in mobile sector in emerging markets, such as China and India. It will focus on increasing smartphone shipments and securing profitability with new product portfolio.
In the first quarter of 2015 it aims to improve earnings in the mobile sector with smartphone shipments growth due to the expansion of A series.