Samsung Q2 2014 earnings were revealed in South Korea on Thursday, and though the company made a net profit 6.25 trillion Korean Won ($6.1 billion), the numbers also represented a stark decline of 19.6 percent from last year’s yield.
In a statement, Samsung said that the weak quarter was an indirect result of stagnant demand for smartphones and tablets, which in turn led to increased marketing expenditures to reduce inventory. “Amid low seasonality, smartphone demand remained flat [quarter-over-quarter] while [it] declined slightly QoQ for Tablet,” a Samsung presentation read (PDF). Samsung is a smartphone giant and it ships endless phones all over the world, and the company wrote that “slower demand for mobile devices also impacted Samsung’s logic chip business or System LSI.”
In addition to the turtle market growth, Samsung also said that the appreciation of Korean Won played a vital part in causing loss to some of the company’s profit. As the Korean won strengthened, Samsung was able to bring back less of the revenue it made off consumers in foreign markets.
Samsung’s second quarter results press release was wary about the future, stating that “the second half of 2014 will remain a challenge,” and “prospects for growth remain unclear as competition over global market share intensifies in the mobile industry.” Still, the company does expect to see growth in consumer electronics next quarter, potentially spurred “by shipments of premium TVs with curved and UHD features.”
Samsung also mentioned that in the second half of the year it would “focus on releasing new premium mobile devices and a new flagship model in the large screen category, along with new mid-to-low-end models with more advanced features and competitive pricing.” Analysts told that Samsung may have to focus on creating more sub-$200 devices, as well as focus on ways to decrease the costs of making its further high-end phones. In its press release, Samsung also promised “a more diverse product portfolio” of wearables in its Galaxy Gear line.
The post Samsung Q2 2014 earnings show reduced profits as smartphone demand remains flat appeared first on AndroidSPIN.
When Samsung took the time to update investors ahead of its upcoming quarterly earnings report, it warned ‘weak demand’ for phones and an increased marketing spend could hit the company hard. That report hit today, and it’s as bleak as the company expected. In its second quarter, Samsung posted profit of 6.25 trillion won ($6.1 billion), down from 7.77 trillion won ($6.96 billion) last year, its lowest quarterly profit in two years. Smartphone sales contributed the majority of its revenue, but the Samsung’s flagship phone, the Galaxy S5, languished as the iPhone continues to fly of shelves and Chinese brands cut directly into its low-end business.
As expected, Samsung blames the global slowdown of mobile sales and a strong won for its poor second quarter, noting that it spent more on marketing to shift a backlog of devices it couldn’t sell. And as fewer phones hit the market, its chip business also took a hit. With all of those factors weighing heavy on its shoulders, Samsung says that the second half of 2014 will “remain a challenge” as global competition “intensifies.” It expects mobile sales to grow in the next quarter, helped by the rollout of new flagship products, which likely includes the Galaxy Note 4, but warns it will be even harder to turn sales into profit, as the average cost of smartphones continues to fall.
With Apple rumored to be working on a bigger iPhone and its rivals eating into its market share in Asia, execs are well aware that the company has its work cut out if it’s to return to growth in its next quarter. Samsung believes introducing new technologies and adopting new designs will help, as will concentrating on a smaller number of products, suggesting we could see a whole new Samsung emerge in the coming months.
Back when Oculus VR first showed off its second virtual reality development kit, the Facebook subsidiary wasn’t saying anything specific about the origins of its new, higher-resolution screen. But now that that second dev kit is shipping to pre-order customers, the teardowns have begun and we have a better idea of what it’s using: the screen from Samsung’s Note 3. Not a similar screen, but the screen directly taken from a Note 3 smartphone — an AMOLED pushing 1080 x 960 into each eye. Oculus VR even kept the touch module attached, though we’d strongly suggest against trying to use it while wearing the Rift headset.
As iFixit notes, the screen is being overclocked to run a higher refresh rate (75 Hz), which is important in creating what Oculus calls “low-persistence”. Hilariously, when the headset’s taken apart, you can see the directness of the screen’s use, camera-holes and all. Check out the video below for a full walkthrough of the new Rift dev kit.
Of course, Samsung and Oculus working together is interesting unto itself. We reported in May that Oculus VR and Samsung are collaborating on another VR headset — “Gear VR” — which Oculus is creating the software for while Samsung creates the hardware. That Samsung is providing the screen for Oculus’ new dev kit looks to be another component of the partnership.
Interested in learning more about the second Oculus Rift dev kit? Check out the video below!
Samsung Galaxy Alpha rumors just keep on coming. This premium device was expected to launch on August 4, but it seems that won’t be the case, at least if the latest rumor is to be believed. AllAboutSamsung reports that the launch date will be August 13, not August 4. Galaxy Alpha was expected to sport… Read more »
The post Galaxy Alpha to be launched on August 13 instead of August 4? appeared first on AndroidGuys.
Samsung has spent months promising a paid tier for Milk Music that takes the gloves off. Well, it’s here at last — an update to the Android app for its exclusive (if Slacker-based) streaming service offers a $4 per month Premium tier that brings offline listening, unlimited skips and the option of removing DJ banter. Both the free and paid tiers remain ad-free for now, so don’t rush to upgrade unless you need constant access to your tunes. That parity isn’t going to last forever, though, so be prepared to cough up some cash in the future if you want to dodge commercials.
Via: Android Police
Source: Google Play
Samsung’s new TVs have pressed 4K and curved frames as features, but what if you want one that’s only curved sometimes? That’s where a bendable TV comes in, and Samsung says it will release the industry’s first one on August 1st in Korea. We got a peek at an 85-inch version in January at CES (check after the break for video of the demo unit), but the one going on sale is 78-inches. We’re not sure how much it will cost, but we’re betting the feature isn’t cheap. As usual, Samsung is dueling with its Korean counterpart LG, which showed off a flexible OLED TV at CES. Both recently announced 105-inch Ultra HDTVs for sale, and are furiously chasing the title of “best screen almost no one can afford to buy.” If this one gets a US release date, we’ll let you know which store window to look at it through.
Source: Samsung Tomorrow (Korea)
Need to replace your Samsung Galaxy Note 3 battery? Did you know it’s not going to cost you a ton of money to do so? Nope, you can often get away with one for under $40, sometimes far less. Such is the case with the standard battery over at Amazon. This is the same battery… Read more »
The post Accessory of the Day: Samsung Galaxy Note 3 battery appeared first on AndroidGuys.
Samsung Galaxy Alpha leaks just keep on coming. We’ve seen its images leak along with partial specifications recently after which there’s been another leak which revealed what kind of screen will Galaxy Alpha sport once its out. We’ve already heard that the device might get launched before IFA and now we have a specific date… Read more »
Motorola might not be the only company making a smartwatch with a circular display in the near future. Samsung has filed for a trio of US design patents for smartwatches that are much more rounded than squarish devices like the Gear Live. The watch faces vary in their curviness, although they all have a similar camera in the band like the early Galaxy Gear; one example (what you see above) also has charging pins in the clasp, rather than on the watch itself. It’s clear that Samsung is seriously considering circular wristwear, although whether or not it actually builds any of these gadgets is another matter. All the patents were filed last March, or well before the company saw poor Galaxy Gear sales and revamped its designs — if these concepts ever translate to real products, there could be a lot of changes.
Samsung warned that its smartphone sales weren’t that great this spring, and now we have the numbers to show just what the company meant. IDC estimates that Samsung’s smartphone shipments saw a rare year-over-year drop in the second quarter, taking it from a lofty 32.3 percent market share down to 25.2 percent. That’s still enough to give it a comfortable lead, but a shock for a company which is used to growth. The cause, analysts say, is the rapid rise of Chinese brands that cut directly into Samsung’s low-end business. Huawei claimed 6.9 percent of the smartphone space after doubling its shipments, thanks in part to heavy discounts on phones like the Ascend P7; Lenovo jumped to 5.4 percent on the back of both budget phones at home as well as rapid expansion abroad.
Both Apple (11.9 percent) and LG (4.9 percent) lost share, although IDC notes that their shipments were up. Also, neither firm was expected to have a stellar season. LG only just launched its hot-selling G3 flagship at the tail end of the spring, while many expect Apple to jumpstart sales with at least one new iPhone in September. It may be trickier for Samsung to bounce back, however. The spring was supposed to represent a big spike in sales as the Galaxy S5 arrived, but that didn’t materialize. The company is pinning its hopes on both a new Galaxy Note and a mountain of budget phones. However, historically, neither has sold as well as the Galaxy S series.