Samsung Faces Decline In Profit In Q4; Apple leads

By Kunwar Kunal
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Samsung had a rough patch in 2019, especially owing to the loss it faced in Q4. The loss that tumbled its profit occurred due to poor demand for display panels and falling price values of the memory chips-- which the company designs. However, the giant South Korean-conglomerate retains its top position in terms of flagship smartphone offering.

Samsung Faces Decline In Profit In Q4; Apple leads

 

The data shared by Samsung shows a tumbling figure by 34%, taking the toll to 7.16 trillion won (USD 6 billion). And, the overall toll figure rose up with 1% to 59.88 trillion won (USD 50 billion). The dip in profit sharing remains worst in the last year, in comparison to previous years since 2015.

On the other hand, Apple made bigger fortunes. The Cupertino-tech after witnessing a dip in profit, due to the iPhone XS and XS Max debacle, is back on track now. As per the December 2019 data by Apple, the company's revenue surged 8.9% to USD 91.82 billion and even the overall earnings marked profit to USD 55.96 billion.

Apple is mainly getting benefits after it launched the iPhone 11 series, alongside AirPods Pro wireless earbuds and App Store. Ever since the iPhone 11 arrived, the demand has been rising. One thing the makers kept in mind was the price, and with a cheaper iPhone 11 offering, the plan greatly worked out in Apple's favor.

According to an Apple official, Apple shipped a total of 70.7 million smartphones than 68.8 million handsets by Samsung, in the December quarter. Samsung's mobile market remained robust but failed in the component section. Talking about the smartphone market, the giant's overall revenue surged 7% to 24.95 trillion won (USD 21.1 billion), while its display and semiconductors profit tumbled revenue by 11%.

The coming days will be crucial for Samsung, as it is venturing into 5G and foldable phones. While many countries including India haven't got a 5G spectrum, it might be a chance that consumers wouldn't show interest in spending extra money over 5G phones. It's likely that the profit-making of the firm would remain flat. On the other hand, the voids that could get its way will be filled by Samsung's other offering.

 

However, the company expects that yet another time users will be running after its next-flagship offering, as it has managed to attract them over the past couple of years. Moreover, it still remains on back foot when compared with Apple's other supply of products, as Apple's ecosystem is strongly getting bigger with the addition of more services. And, whatever product or services Apple launch, users utmost go for the purchasing.

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