“Samsung Electronics Co. posted its biggest drop in quarterly profit since at least 2009 as the world’s largest smartphone maker loses ground to Apple Inc. and Chinese competitors,” Jungah Lee reports for Bloomberg News.
“Operating profit fell 60 percent to 4.1 trillion won ($3.8 billion) in the three months ended September from a year earlier, the Suwon, South Korea-based company said in a regulatory filing today,” Lee reports. “Declining share of shipments in China and India plus lower demand for Samsung’s high-end products are eroding profit from the units supplying displays and processor chips.”
“Sales were about 47 trillion won in the quarter, the company said today. That compares with the 50.3 trillion-won average of 40 estimates,” Lee reports. “While total smartphone shipments rose in the quarter, the mobile unit’s profit margin shrank on higher marketing spending and lower average selling prices for devices, Samsung said in an e-mailed statement.”
MacDailyNews Take: Yes, that Mikey Dell make-it-up-on-volume is a great strategy, huh?
“Third-quarter operating profit at the mobile unit, the company’s biggest business, was probably 2.5 trillion won on sales of 26 trillion won, according to the median estimates of five analysts surveyed by Bloomberg News. The unit’s profit fell from a record 6.7 trillion won a year earlier,” Lee reports. “Samsung probably shipped 12 million units of its marquee S5 smartphones in the third quarter… according to I’M Investment & Securities Co.”
MacDailyNews Note: Apple sold 12 million iPhone 6/Plus units in its first four days. YKBAID.
Read more in the full article here.
MacDailyNews Take: Burn, baby, burn! To the ground.
[Thanks to MacDailyNews Reader “Bill” for the heads up.]
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