Samsung predicts profits drop ahead of Galaxy S5 launch

Samsung Electronics is preparing to post its second consecutive quarter showing a drop in profits, as it readies the global launch of its Galaxy S5 handset.

Samsung: profits predicted to fall as company prepares to launch the Galaxy S5
Samsung: profits predicted to fall as company prepares to launch the Galaxy S5

The brand has estimated it will record an operating profit of $7.96bn (£4.8bn) for the three months from January to March, which is 4% lower than the same period last year.

The drop in profits follows a 6% decline in the previous quarter.

The Galaxy S5 is being launched later this week, and is reported to have priced the handset at 10% cheaper than its last model, the S4.

Samsung is also understood to have reduced its marketing spend for the new model in an attempt to cut costs.

Last month, Ines van Gennip, Samsung's UK and Ireland marketing director told Marketing that the brand expects to make product placement a key part of its marketing plans for the launch of the new phone, following the buzz around the Ellen DeGeneres Oscars selfie. 

Earlier this year, Samsung said that it expected competition in the smartphone sector to intensify, as it faces a strong fight for market share from rivals HTC, Apple and Huwawei.  

Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content


1 Why creative people have lost their way

What better way to kick off the inaugural issue of Campaign's monthly print offering than with another think piece on the current failings of our industry, written by an embittered, pretentious creative who misses "the way things used to be"...


1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).