Samsung Q2 Results Show12% Quarterly Fall in Mobile Revenue

Samsung Electronics has finally announced revenues of 52.35 trillion Korean Won on a consolidated basis for the Q2 which ended in June 30, 2014. According to the report generated by the company, Samsung's revenue fell by 2% quarter-on-quarter. Operating profit for the quarter was 7.19 trillion, which is a 15% drop from the last quarter.

It has reported net profit of 6.25 trillion Won ($6.1 billion) on revenues of 52.35 trillion won ($51.02 billion), down by 8.9% compared to the same quarter last year.

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Breaking the report into different sections, in the mobile category, Samsung reported revenues of 27.51 trillion Won, which is down by 12% compared to 31.36 trillion Won in the previous quarter (Q1 2014). It is said that the fall in the profit is due to slow global sales of smartphones and tablets and increase in market expenditure, said Samsung.

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Overall, the Mobile Communications and Networks sector saw operating profits of 4.42 trillion Won on 28.45 trillion Won in revenue, compared to 6.28 trillion Won profit in 35.54 trillion Won revenue from a year earlier. However, the tablet demand is still on the verge of coming down, compared to last quarter.

In the display section, the OLED sector earnings projected a slight increase due to new high-end smartphones. Also Full HD panel sales increased with the company starting mass production of 5.1-inch QHD panel in the quarter.

Demand for memory chips will continue to rally in the July-September quarter while supplies stay limited. This will increase profit margins, said the company. On the other hand, System LSI will be hard pressed to see profit due to weak demand and investment spending for next year.

Compared to the second quarter, negative foreign exchange implications on business in the September quarter is expected to have a lesser impact.

You can have a look at the figure below for other details.

Samsung plans to release new premium mobile devices, new mid-to-low-end models with more advanced features with competitive pricing and a new flagship smartphone with a large screen. It also announced that it would introduce more wearable devices.

Source