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January 9, 2015

Samsung to Record Profit Loss

First Time Since 2011

For the first time since 2011, Samsung is anticipating falling profits.


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The electronics giant confirmed Thursday it will record its first annual profit decline in nearly five years. The decline comes as the company — like many other electronic firms — has been showcasing new products in Las Vegas at the annual Consumer Electronics Show.

Samsung lost market share for three consecutive quarters in 2014 and experts were anticipating the same downward trend for the year’s final quarter. The losses were being linked to stiff competition from Apple and cheaper Chinese rivals.

Reuters reported Samsung is estimating the fourth-quarter operating profit will be $4.74 billion.

IBK Investment & Securities analyst Lee Seung-woo told Financial Times the competition has been stiff and Samsung’s Smartphone division’s earnings “seem to have bottomed out, but are not likely to improve by much.”

The company, he predicted, may up its game to try to attract new customers and bring back those who have left by including features such as a metal casing and curved display with its new Smartphone. The device, dubbed the Galaxy S6, is expected to launch in the next two months.

Some analysts, though, are more optimistic.

Greg Roh of HMC Investment told Reuters the Korean Won’s recent weakness likely played a role in the company’s negative figures.

It’s likely just a bump, though, he added.

“I expect profits to continue improving through at least the second quarter of 2015.”


W. Brice McVicar is a staff writer for SiteProNews.