Samsung Profits for Q4 2013 Lower, Samsung Dedicated to Selling Low End Smartphones
Samsung Profits for Q4 of 2013 18 Percent Lower, Hefty Numbers of Low End Smartphones Shipped
Samsung profits for the last quarter of 2013 are lower for the first time since 2011. In the previous four quarters the company had greater profits. The last quarter of 2013 was not as profitable. Samsung profits for that period miss the estimates given by analysts. The lower data are due to smaller sales in the mobile sector. And there is one more reason. The company paid hefty bonuses to its employees for the end of 2013.
According to Samsung’s guidance, the operating Samsung profits for the fourth quarter of 2013 are at $ 7.8 billion. That is 18 percent lower than the previous quarter. And that is 8 percent lower compared to the same time the year before. It is true that the sales were larger. But the growth from quarter to quarter was slow. It was the slowest since the third quarter of 2013. That was not in line with the traditionally high Samsung profits for that period of the year.
According to Daewoo Securities analysts, in the fourth quarter of 2013 Samsung shipped fewer units of its flagship smartphone. It shipped 13 million Galaxy S4 phones for that period. That was lower, compared to the 17 million units shipped in the previous three months. According to the data announced, the total number of Samsung smartphones shipped in the fourth quarter of 2013 was 91 million.
As analyst Mark Newman pointed out, Samsung profits and sales are lower for that period. But there is a strong Samsung point too. Doubtless currently the Korean behemoth is the only company making money by selling low end smartphones.
The amount of bonuses paid to employees by Samsung in Q4 is $657. That was really a record amount. It marked the twentieth anniversary of the Samsung New Management Initiative. With it Samsung headed towards the position of the largest consumer electronics company on a global scale.
Source: Android Authority