“Samsung Electronics Co Ltd on Thursday confirmed expectations for its first annual profit decline since 2011,” Se Young Lee reports for Reuters. “The South Korean tech giant lost market share for three consecutive quarters up to July-September, and analysts say the trend likely continued in the October-December period thanks to competition from Apple Inc’s new iPhones and cheaper Chinese rivals like Xiaomi Inc.”
“The outlook means Samsung’s 2014 profit will probably be 25 trillion won, the weakest in three years, although it marks a rebound from the third-quarter’s 4.1 trillion won profit which was the firm’s lowest quarterly result in more than three years. The company is expected to release its annual results around the end of January,” Lee reports. “The mobile division’s contribution to Samsung’s profit has slipped from about 68 percent at its peak in 2013 to about 44 percent in the third quarter, as its high-end offerings lost out to Apple’s iPhones.”
Lee reports, “Analysts say the company’s new focus on mid-to-low tier smartphones will squeeze margins and cap profits, offsetting the benefits of the expected increase in sales.”
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MacDailyNews Take: The more pain for beleaguered Samsung, the better!
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