Samsung profits in smartphone sector dip.
South Korean giant Samsung Electronics has noticed a 25% drop in its profits for the second quarter. The drop has been noticed due to the slow down in the smartphone market and an estimated strong Korean currency.
The company is expecting to cash in on an operating profit of 7.2 trillion Won between the period of April-June which had plunged from 9.5 million Won a year back. The operating profit has now taken a serious nosedive for three straight quarters.
Samsung is now considered as one of the world’s biggest smartphone manufacturers and its handset division accounts for a majority of its profits.
Samsung said that it witnessed a slowdown in the overall smartphone market growth and also faced an increased competition in the Chinese and some of the European markets.
Moreover, a strong Korean currency also taken a toll on the earnings of the company. The growth of Samsung in recent times has been powered mainly due to its mobile phone division. On the other hand, the pace of growth in the smartphone market has been slowing down and the competition in the sector has also increased.
According to the analysts, the profit margins in the sector are expected to fall further. Other smartphone makers who have also ventured into the smartphone market include ZTE, Xiaomi and Huawei.
Photo Credits: DT