Story image

Will new Samsung products boost declining profits?

16 Oct 14

Samsung sells more smartphones than any other company, but profits have dropped significantly in recent years. In fact, Samsung has recently posted its biggest drop in quarterly profit since 2009 - the company experienced a 60 percent drop in operating profits in the three months ended September.

Despite making more sales, profits are down due to the fact that the average selling price is lower and not enough is spent on marketing, says Bloomberg, the financial software, data and media company.

Apple started selling larger screen iPhones, and as this was an area Samsung previously dominated, this was when profits began to decline, Bloomberg says.

When the profit report was released, Samsung released a statement commenting on developments and imminent releases. "We'll differentiate our smartphone models and enhance line-up of low-cost models. We'll keep moving to secure the company's competitiveness by expanding our transaction of OLED panel and other components," it said. “The company is preparing new smartphone line-ups featuring new materials and innovative designs.”

Recently, the Samsung Note 4 was released, but it is still uncertain whether this will boost sales. “The Note 4 will help to stabilise Samsung’s device unit in the fourth quarter, but it will need more than one evolutionary model to stop the iPhone juggernaut,” says Neil Mawston, executive director of Strategy Analytics in London.

However, it could be just what the company needs. “Samsung is better positioned than any other players out there to bring out new phones with upgraded hardware features,” says Claire Kim, a Seoul-based analyst at Daishin Securities.

Kiwis make waves in IoT World Cup
A New Zealand company, KotahiNet, has been named as a finalist in the IoT World Cup for its River Pollution Monitoring solution.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."
How SMBs can use data to drive business outcomes
With the right technology, companies can capture consumer, sales, and expense data, and use it to evaluate and construct future plans.
Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.
Half of companies unable to detect IoT device breaches
A Gemalto study also shows that the of blockchain technology to help secure IoT data, services and devices has doubled in a year.