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Samsung Stand In Siam Paragon Mall. Bangkok, Thailand.

Samsung suffer worst profits drop since 2012

: Thursday, July 31 - 2014 @ 17:10

Samsung Electronics Co Ltd reported on Thursday an annual drop in profits by 24.6 per cent, prompting concerns its global standing is in decline.

For April to June, Samsung have reported gains of $7.03 billion, of which $4.30 billion was generated from its mobile division, including its flagship Galaxy S5 phone. Nonetheless, Q2 represents a third consecutive decline in profits, which has fuelled fears that the Korean tech giant will struggle to return to its peak of early 2013.

The relative poor performance of its Galaxy S5 model, which has been widely outsold by Apple’s IPhone 5S, as well as the surge of cheaper smartphone alternatives from brands such as China’s Xiaomi, have all contributed to this decline. What’s more, the deflating results come as Apple prepares to launch a larger version of its IPhone, which will, for the first time, present a challenge to Samsung’s Note range.

These factors are all likely to shake up the smartphone industry in the near-future, which is experiencing record growth, particularly across GCC states, a We Are Social study found.

In the UAE and Saudi Arabia, smartphone users represented 74 per cent and 73 per cent of the population, respectively. Incredibly, smartphone users in the GCC, on average, owned 2.9 of these devices.

Concerning mobile phones in general, we are close to seeing an average of one phone per person globally, as penetration reaches 98 per cent. Locally, however, this figure is considerably higher, such as in Kuwait, where there are 2.12 phones for every resident.

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Thursday, July 31- 2014 @ 17:10 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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