Profits decline at world’s largest smartphone manufacturer; hopes are now being pinned on Galaxy S5 and the World Cup
Samsung reported an operating profit of 8.5 trillion won (£4.5 billion) for the three months to March 31 (Q1), as smartphone sales declined by 2.5 per cent compared to the previous three months.
The smartphone manufacturer blamed the dip on “weaker seasonality” and says it expects sales to return to growth in Q2, off the back of the release of its latest flagship the Samsung Galaxy S5. The figures mean that profits fell by three per cent year-on-year, following a six per cent decline for the three months to December 31.
The mobile division made an operating profit of 6.3 trillion won accounting for around three quarters of the total amount the company made in the reporting period.
“Samsung is expected to see profits rally in the second quarter and beyond, on the back of improved sales of display panels and home appliances,” the company said in a statement.
“Orders for display panels that are used for premium smartphones and TVs are 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.”
The company shipped nearly 13 million tablets during Q1 and says it expects tablet demand, along with mobile, to increase slightly in Q2.