Samsung’s Profit In Q4 2013 Declined By 18%: Korean Giant Loses Top Spot In Mobile Ad Impressions [Report]

Must Read

LinkedIn Finally Rolls Out The Most Requested Feature By Users

Microsoft owned LinkedIn has recently been reported to have revamped its profile section with an amazing feature...

Google Warns Users To Update Their Chrome Browser Right Away!

If you are an active user of the Chrome browser, Google wants you to stop all the...

Indian-Origin IT Firms Woo Donald Trump Amid Re-elections And India Visit!

Amid the United States going through the presidential election, major Indian-origin biggies such as TCS, Infosys and...

Korean electronics giant Samsung Electronics Co., Ltd. (KRX:005930) posted their earning reports for the fourth quarter ending December 31, 2013. According to the report the company has reported revenues of 59.28 trillion Won which amounts to $54.95 billion, while the net profit stood at 8.31 trillion Won ($7.7 billion) amounting to a decline of 18% compared to the previous quarter with 8.84 trillion Won, when converted to USD the same figures reach $ 8.18 billion operating profits for the same period in 2012.

Interestingly, this was the first quarterly net profit decline for Samsung in the last two years although the company was able to record more revenue with 228.69 trillion Won compared to the fiscal year 2012 with just 201.10 trillion Won which accounted for profits of 14%. Focusing on the record revenue generation and net profit on a quarterly basis, Samsung dived significantly in Q4, 2013 with a decline of 18% over the previous qaurter – Q3, 2013 to record revenues of $55.6 billion and net profit 0f $9.40 billion. Korea-based electronics gaint accounted for $51.5 billion in Q2, 2013 with a net profit of $6.96 billion. The comparative study below indicates how the revenue and the net profit have changed over Q1, 2013 to Q4, 2013.

samsung 2013

Even though the company’s performance was appreciable if we compare the revenue generated over the previous year, but Samsung has experienced a substantial loss over the last quarter. The revenue generated through their mobile division was again responsible for half of their revenue which is 33.89 trillion Won, but their performance declined over the last quarters by 9% and 18% each.

Advertisements

“This year, looking at the industry environment, we do expect that the industry will become a bit more difficult with growth slowing down and competition becoming more fierce.” – Hyunjoon Kim, an executive in Samsung’s mobile business.

Reasons Amounting To The Loss!

The fiscal year 2013 saw the company surpass previous year records but somehow in the last quarter the revenue for Samsung did not live up to their own expectations. Samsung also lost its first spot in mobile ad impressions with 29.58%  in Q3, 2013 with an accounted fall of 1.52% over the last quarter. They lost in the mobile segment as their profits declined and the advertisements could not strengthen their products in the market when compared to the previous years. Samsung generally invests heavily on marketing in the last quarter of its fiscal year, but the same could not help them to profit in Q4, 2013.

marketing

One of the main other factors behind the company’s loss is decrement in the value of the Korean Won compared to the US Dollar, which has declined to 1080 KRW per 1 USD resulting in the loss of approximately 700 billion Won. This amounts to improper impact on the revenue and net profit generated by Samsung Electronics. The company rewarded their employees with special bonuses worth 800 billion Won to commemorate 20 years since Chairman Lee Kun-hee announced a management strategy, which brought the profit figures down, as per Reuters.

Closely analyzing a few aspects of the deal between Apple Inc. (NASDAQ:AAPL) and China Mobile Ltd. (NYSE:CHL), Samsung needs to be more worried about the China market where Apple has collaborated with the world’s largest mobile telecom carrier to sell an estimated 20 million iPhones in the present year. This is the biggest challenge for Samsung in the Chinese market where it has been the largest Smartphone vendor till date.

3 COMMENTS

  1. avin_46 Nokia Q4 shipment is down when compared with Q3 2013. Nexus can be a reason but Samsung is most responsible for profit declining

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Digital Payments in India: UPI Stands Triumphant Over Debit and Credit Cards

UPI or the Unified Payments Interface has become one of the fastest-growing payment platforms in India and...

Backed By Narayan Murthy, Jeff Bezos To Go After Zomato And Swiggy!

Just when Zomato and Swiggy thought that after the acquisition of UberEats by Zomato, the food delivery market in India is going...

India Wants A Bigger Chunk of $100 Billion In Global Taxes Levied On Google, Facebook and Amazon

It has been reportedly found out that India is adamantly pushing for a huge change at Organisation for Economic Cooperation and Development...

Facebook May Have To Pay $3.50 Per Month To Millions of Users?

Almost every internet tech giant, be it Facebook, Google or Twitter, has flourished by optimising and channelising their strategies that are largely...

Google Warns Users To Update Their Chrome Browser Right Away!

If you are an active user of the Chrome browser, Google wants you to stop all the work and update Chrome browser,...

TikTok Owner ByteDance Gearing Up To Challenge Facebook, Apple And Amazon!

ByteDance Inc. doesn’t want their massive success to go downhill after its blockbuster video app TikTok blew up in the social media...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This