Samsung Announces 64% Drop in Mobile Profits

In recent reports, Samsung has announced its earnings for the 4th quarter of 2014 announcing a 36% drop in profits year-over-year and a 64% drop in profits from its mobile division.

samsung

The company generated 52.73 trillion won in revenue in Q4 and profits of 5.29 trillion won ($4.84 billion). That’s down from 59.28 trillion and 8.31 trillion won in Q4 2013. Earnings for its mobile division declined for the fifth consecutive quarter due to increased competition from Apple and other smartphone manufacturers such as Xiaomi.

One highlight from Samsung’s earnings was the performance of its semiconductor division. Its profit was 2.7 trillion won, the highest its been in over four years. The latest rumors have the company making 75% of A9 chips for future Apple devices.

Samsung says that looking ahead to 2015, earnings for components are expected to be static, due to slow seasonality across the IT industry. During this time, the company plans to focus on ramping up the volume of the System LSI Business’ 14-nanometer process, while also focusing on improving the Display Panel segment’s premium product offerings.

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