Samsung quarterly profits slip as competition with Apple intensifies

Samsung has revealed its first drop in quarterly profit in two years, as the brand's smartphone battle with Apple intensifies.

Samsung: 2013 Super Bowl campaign with Seth Rogen and Paul Rudd
Samsung: 2013 Super Bowl campaign with Seth Rogen and Paul Rudd

The Korean consumer electronics manufacturer revealed that operating profit between October and December 2013 fell 6% year on year to 8.3tr won (£4.65bn), in line with its previous estimate.

This decrease was in part caused by a one-off 800bn won (£445m) employee bonus payment to mark 20 years since chairman Lee Kun-hee announced a management strategy, which is widely credited as having been the catalyst for Samsung’s recent success.

It also claimed a strong domestic currency wiped around 700bn won (£390m) off its profits.

However, the world’s bigger smartphone maker is facing increasing competition from Apple, which launched its 5S and 5C handsets at the end of last year.

In its results presentation, Samsung said it expected price and product competition to "intensify", adding, "it will be challenging for Samsung to improve its earnings in the first quarter as the weak seasonality of the IT industry will put pressure on demand for components and TV products."

Earlier this month, Samsung revealed its new curved TV product at the Consumer Electronics Show in Las Vegas with a botched presentation by Michael Bay, the director of the 'Transformers' action films, who fluffed his lines and walked off stage.

Topics

Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,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

Share

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"...

Share

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).