Mobile phone manufacturer's earnings report: Samsung's share is the highest, down 6% year-on-year

Yesterday, a number of technology companies released the latest quarterly results, including Samsung, the world's largest mobile phone maker, saw a sharp slowdown in profit growth in the fourth quarter of last year, with operating profit down 6% year-on-year, the first year-on-year decline in two years. On the same day, Microsoft released data for the second fiscal quarter of fiscal 2014, with a net profit of $6.558 billion, a 3% increase from the same period last year. Nokia, which was acquired by Microsoft, lost a loss of 191 million euros last quarter.

Samsung: Growth slows sharply

Data show that Samsung Electronics' sales in the fourth quarter of last year increased by 5.7% year-on-year to 59.3 trillion won; net profit was 7.3 trillion won (about 6.7 billion US dollars), up 3.69% year-on-year, but 25.6% from the third quarter of last year. The growth rate, net profit of 8.24 trillion won, has slowed sharply; operating profit fell 6% year-on-year to 8.3 trillion won, the first decline since 2011.

Samsung Electronics said that the fluctuation of the won has caused a profit of 700 billion won, and in the fourth quarter of last year, it also included a one-time expenditure of 800 billion won related to employee bonuses. Mobile phones and telecommunications equipment accounted for 66% of operating profit for the quarter.

It is worth noting that although the mobile business has contributed more than half of the profits to Samsung Electronics in the past two years, due to the increase in sales of low-end smartphones and large marketing expenses, Samsung Electronics’ mobile operating profit margin in 2013 was from the previous year. In the same period, 17.8% narrowed to 16%, and the mobile sector's operating profit in the fourth quarter fell by 18%.

Microsoft: Net profit increased by 3%

In the second fiscal quarter of fiscal 2014, as of December 31, 2013, Microsoft's revenue reached $24.52 billion, an increase of 14% over the same period of the previous year; net profit reached $5.66 billion, an increase over the same period of the previous year. 3%.

The Nokia equipment and services division (mainly responsible for the mobile phone business) acquired by Microsoft received revenue of 2.633 billion euros in the fourth quarter of last year, down 29% year-on-year and operating loss of 191 million euros. Last year, Nokia’s equipment and services division earned 10.7 billion euros and had an operating loss of 514 million euros. Nokia said in its earnings report that mobile phone sales did not meet expectations, mainly because of the increasingly fierce competition from other vendors. Last year, Nokia sold its mobile phone business to Microsoft for $7.3 billion.

Industry: Mobile phone market or decline

The industry expects that global mobile phone competition will be more intense in 2014. According to the latest report from market research firm TrendForce, global smartphone shipments in the first quarter of 2014 fell 5% quarter-on-quarter, the first time in nearly three years. Since 2011, the global smartphone market has maintained a steady growth.

The industry believes that Samsung Electronics is facing new challenges. The competition from Apple and China's local smartphone brands is forming a “sniping” for Samsung Electronics. In the high-end market, Samsung will compete with Apple in the low-end market. It is challenged by the local Chinese smartphone brand.

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