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Samsung today issued its pre-earnings guidance for the fourth quarter of 2014, which continues its trend of declining operating profit.
According to the company’s estimate, its sales for the holiday season of 2014 will be around 52 trillion won ($47.3 billion) with an estimated profit of 5.2 trillion won ($4.5 billion). While this is higher than the expectations of most analysts, it is still significantly lower than its earnings from the same period last year.
In the last quarter of 2013, Samsung managed to earn a profit of 8.3 trillion won ($7.6 billion) on sales of 59.3 trillion won ($54.9 billion). This means that the company’s revenue declined by 12 percent while its operating profit have crashed by more than 37% in Q4, 2014.
On the positive side, Samsung’s revenue and profit are up sequentially from Q3, 2014, but that was a given since the holiday season is the biggest quarter for all major smartphone OEMs. In Q3, 2014, Samsung had reported a total revenue of 47.45 trillion won with a profit of 4.06 trillion won — a decline of over 60% on a yearly basis.
Samsung has lost market share and its profit have declined steadily on a YoY basis throughout 2014 thanks to strong competition from Chinese vendors like Xiaomi in the low-end market.
[Via Samsung]
