Samsung forecasts drop in profit for second quarter in rowApril 8, 2014 - 12:40 AMT PanARMENIAN.Net - Samsung Electronics, the world's biggest maker of TVs and mobile phones, has forecast a drop in profit for the second quarter in a row, BBC News reports. The company expects to make an operating profit of 8.4 trillion won ($7.9bn) for the January-to-March quarter, down 4% from the same period last year. This follows a 6% decline in operating profit in the previous quarter. Young Park, an analyst with Hyundai Securities said that Samsung's profits were being hurt by falling margins for smartphones as well as a slowdown in the growth rate of the sector. The success of Samsung's Galaxy range of smartphones has been one of the biggest drivers of its growth in recent years. But is has been facing rising competition as companies look to tap into the sector's growth. Rivals Apple, HTC and Chinese manufacturers such as Lenovo, ZTE and Huawei have all been looking to boost their market share. That has prompted vendors to reduce prices to attract more customers, putting pressure on their profit margins. Earlier this year, Samsung had warned that it expects competition in the sector to "intensify" further. One analyst said that as profit margins in the sector continue to fall, Samsung may need to cut costs to sustain its earnings growth. "What Samsung needs to do this year for additional growth are things like cost reduction and reducing marketing costs," the BBC quoted Greg Roh, an analyst with HMC Investment and Securities, as saying. "In some sense, Samsung has no way to prevent a decline in its earnings without improving internal efficiencies." Related links: Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. Aliyev says no need for mediators in Armenia-Azerbaijan process Azerbaijani President Ilham Aliyev believes that Baku and Yerevan do not mediators in the process of normalizing relations. |