Tuesday, January 7, 2014

Samsung Electronics Co profit falls for first time in more than two years as smartphone momentum wanes

Samsung Electronics Co. posted its first profit decline in nine quarters as new Apple Inc. iPhones won over high-end handset buyers and models from cheaper Chinese producers lured budget customers.
Operating profit was 8.3 trillion won ($7.8 billion) in the three months ended December, the Suwon, South Korea-based company said in a statement today. That compares with profit of 9 trillion won a year earlier, according to data compiled by Bloomberg.
Sales of Samsung’s Galaxy S4 have slowed amid the releases of the iPhone 5s and 5c and Chinese makers selling handsets for as low as US$100. The world’s biggest maker of smartphones and televisions is introducing new designs, including curved screens and bendable displays, to spark sales after ramping up spending on employee bonuses and promotions for the Christmas shopping season.

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