Samsung predicts 30% drop in Q1 2015 earningsBy Robin-Leigh Chetty 7 April 2015 | Categories: news
It seems like just yesterday we were ushering in the New Year, but the surprising reality is that the first quarter of 2015 is almost up. For most people it means a check-in with our New Year's resolutions, ensuring that they stay on track. For companies it's much the same. as the Q1 earnings will soon be posted. Having posted strong showings since 2010, it appears that South Korean manufacturer Samsung will post a predicted 30% drop in earnings, compared to the same mark last year.
Samsung took to its official blog early this morning to post its projections, and the numbers are not as good as many stakeholders might have hoped. For Q1 2015, Samsung has projected a total of approximate sales totalling 47 trillion Korean won (the country's national currency), which converts to roughly $43.2 billion. Compared to official numbers posted last year during Q1 of 53.68 trillion Korean won, this represents an almost 30% drop in profits for the company.
Although Samsung has not yet commented on these numbers, they did cite the growing competition from Chinese manufacturers last last year, as part of the reason that company profits have dipped. Samsung's Asian rivals, such as Huawei, have been able to manufacture well equipped mobile devices at a far lower price point. Another factor is the relatively poor showing of the Galaxy S5 (review), which drew criticism for its plastic heavy design.
The new Galaxy S6 and S6 edge flagships then, hold more significance than ever for Samsung, as a strong showing in that market could have a profound effect on Q2's results. For this latest iteration, Samsung has done away with the plastic in favour of glass and aluminium. The new devices also sport Android Lollipop and material design for a far cleaner user interface. Set to go on sale locally on 10 April (and with pre-orders currently underway), the next few months will prove critical for the South Korean company.
As the 10 April release date inches ever closer, Samsung has taken to YouTube in order to hype the Galaxy S6 and S6 edge's build quality. After Apple's now infamous bendgate debacle, the video below show the S6 and S6 edge being put to the test, taking a clear shot at their Cupertino-based rivals.
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