Samsung’s profits fall for the first time in two years

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Group operating profit for Q4 down six per cent year-on-year, while profits in its mobile business slump 18 per cent from Q3 

Samsung suffered its first profit fall in two years, with the manufacturer warning of increased competition in the smartphone sector this year.

Group operating profit was down six per cent year-on-year to 8.31 trillion won (£4.6 billion), while net profit was down 11 per cent sequentially and 3.7 per cent year-on-year to 7.3 trillion won (£4.1 billion).

Sales were up from the previous quarter’s total of 59.08 trillion (£33 billion) won to 59.28 trillion won (£33.1 billion), but up from the 56.06 trillion (£33 billion) figure posted 12 month ago.

Operating profit within its mobile division fell 18 per cent sequentially to 5.47 trillion won (£3.1 billion) but remained steady year-on-year. Sales were down nine per cent from Q3 to 32.17 trillion won (£18 billion) but were up from the 29.60 trillion won (£16.5 billion) figure posted in Q4 2012.

Samsung said the decline in its financial results was due to increased smartphone and tablet demand towards the end of last year.

It added it is expecting demand, price and product competition to intensify this year due to more feature phone users upgrading to smartphones.

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