SEOUL, KOREA - The operating profit ofSamsung Electronics’ IT & mobile division which is responsible forsmartphone manufacturing fell below the 2-trillion-won level in the thirdquarter of this year.This is the first time for the IM division’s quarterlyoperating profit to fall below 2 trillion won since the second quarter of 2011when it posted an operating profit of 1.7 trillion won.
An alarm bell is nowringing loudly for Samsung as the declining pace of its smartphone profits isfaster than expected.
Considering thatSamsung is facing increasing competition with Apple in the high-end smartphonesegment and with Chinese companies such as Xiaomi and Lenovo in the low-end market,it would be difficult for the world’s No. 1 smartphone maker to improve its performanceanytime soon.
The third-quarteroperating profit was down 73 percent compared to a year ago (6.7 trillion won)and down 60 percent compared to a quarter ago (4.4 trillion won).
In contrast, Samsung’sDS division which is responsible for semiconductor and display business postedan operating profit of 2.3 trillion won for the third quarter, the highestsince the third quarter of last year (3.1 trillion won).
Article provided by The Korea Economic Daily