Samsung Registers 30 Percent Dip in Profits in its Latest Quarter
Samsung’s profits have seen a steady drop in the past few quarters. The Korean electronic giant has released the figures for the period from January to March, and there is a 30.5 percent dip in the profits for the company. But the executives at Samsung might be satisfied with the results as the dip is lower than previous quarters.
Samsung said that it expected an earning of 5.9 trillion Korean won ($5.4 billion) in operating profits for the quarter that ended on March 31. The year 2014 was perhaps the worst year for Samsung where the company saw a fall of about 60% in profits over the last quarter of the year.
This is Samsung’s sixth consecutive year-over-year fall in quarterly profit. The smartphone business was the major driver of growth for the company but due to lack of innovation and a barrage of competition, Samsung has steadily lost ground in the business. Industry analysts are predicting better performance in the future following the launch of new Galaxy S6 and S6 Edge.
Taking into consideration the heavy criticism for its lackluster products, Samsung has decided to bring metal frame designs that began with the Galaxy Alpha to more of its products. While the design is just one aspect of things, Samsung should also offer better specs to its customers for the price tag. Companies like Xiaomi, Lenovo, Asus and others have shown that it’s possible to offer great specs at lower prices and the consumers are demanding the same from the bigger companies.