Samsung Electronics reported operating profits of $5.48 billion (5.98 trillion Won) for the quarter ended March 31 2015, with 45.82% of it coming from the IT & Mobile Communications Division (IM). This division reported profits of $2.51 billion (2.74 trillion Won) from revenues of $23.76 billion (25.89 trillion Won).
Out of the total IM earnings, the mobile business accounted for $22.93 billion (24.99 trillion Won) in revenues. Revenues from mobile segment was down 0.1% from $22.96 billion (25.02 trillion Won) in the previous quarter, and down 13.2% from $28.79 billion (31.37 trillion Won) in the same quarter last year. It accounted for 53.03% of Samsung’s overall revenues.
During the this quarter, shipments of mid to low end products increased, however the average sales price (ASP) has decreased. As always, the company has released very little operational detail, hence it’s not clear how much the decline really is.
However, earnings improved quarter-on-quarter (QoQ), which the company attributed to decreased marketing expenses and expansion of new mid and len end smartphones. The company also mentioned that tablet and featurephone shipments decreased QoQ because of which has led to a slight decline in revenues.
– In March this year, Samsung said it would invest as much as $500 million to $1 billion in a manufacturing unit that would produce smartphones and tablets in India. Tamil Nadu and Gujarat are the other states the company considered for the plant. The same month, the company officially announced its Galaxy S6 and S6 Edge smartphones at the MWC. It also launched Samsung Pay, which would allow users to make payments using smartphones, at the same event.
– In January this year, at CES 2015, Samsung President & CEO B.K. Yoon claimed that all of its products will be Internet of Things (IoT) enabled by 2020. The company said it plans to ensure 90% of all its devices are IoT enabled by 2017. Samsung also announced it would invest over $100 million in 2015 in IoT startups by strengthening its accelerator program and expanding international developer events.
– In December last year, Samsung had informed that it is shutting down its ChatOn messenger service by the 1st of February in all markets except for the US. The company blamed ‘changing market conditions’ for the shutdown, despite having said last month, that the service will go on.
– In the same month, HyunChil Hong took over from B.D. Park as the managing director of Samsung India & president of South West Asia.
– Samsung reported $3.11 billion (3.39 trillion Won) in profits from its Device Solutions division, which comprises of the Semiconductor & Display Panel businesses, marginally up by 8.3% from the previous quarter.
– The Consumer Electronics division, encompassing the Visual Display, Digital Appliances, Printing Solutions and Health & Medical Equipment businesses, reported profits of $0.12 billion (0.14 trillion Won), down 11.1% from $0.16 billion (0.18 trillion Won) in the previous quarter. The division reported revenues of $9.41 billion (10.26 trillion Won), down 28.1% from $13.09 billion (14.27 trillion Won) in the previous quarter. The Visual Display business accounted for $5.70 billion (6.22 trillion Won) of earnings.
Samsung reported overall revenues of $43.22 billion (47.12 trillion Won) for the quarter, down 10.63% from 48.37 billion (52.73 trillion Won) in the previous quarter, and down 12.2% from $49.24 billion (53.68 trillion Won) in the same quarter last year.
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