Thursday, January 29, 2015

Samsung's smartphone primacy under threat from Apple after weak Q4 results

The South Korean giant said earnings from smartphones and other mobile gadgets dropped 64 percent annually in the October-December period to 1.96 trillion won ($1.80 billion), contributing to its first annual earnings fall in three years.
             
It was the mobile division's fifth consecutive quarter of decline, in contrast to Apple's record-breaking 74.5 million iPhone sales in the three months to Dec 27 on the back of the success of its big-screen iPhone 6 and 6 Plus.
             
Analysts say Samsung is under immense pressure to hang on to its market share, with a lot resting on the launch of its next  flagship Galaxy S6 high-end smartphone due around March.

While Samsung did not release smartphone sales figures, it said smartphone and tablet shipments declined in the fourth quarter, leading some analysts to declare Apple had caught up.
             
Mobile's share of Samsung's operating profit fell from almost 70 percent in 2013 to about 58 percent last year.
             
The company expects shipments and average selling prices for handsets to pick up in the first quarter following the launch of new mid-tier models like the Galaxy A.

 
 
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