Samsung loses profit because of competition from Apple

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samsungSamsung Electronics released a statement in which it predicts the second consecutive drop in quarterly profit due to lower prices for forced line of smartphones Galaxy and their components due to weak demand.

Samsung sales fell by 4 % per cent compared with last year, the document says. Now the company’s revenue is estimated at 8.4 trillion won ($ 8 billion ) from 8.8 trillion won a year earlier. Sales reached 53 trillion won, while analysts had expected 54 trillion won.

The main reason for the decrease of profit – forced reduction of prices of smartphones , which is explained by the popularity of new models on the market iPhone. Samsung tried to attract buyers low prices , but eventually lost much of their profits.

Now the company faces a difficult task : it is necessary to increase profits in the period of the global decline in prices on the phones. Experts say that if Samsung and the next quarter will fall in , the shareholders will insist on reducing internal costs of the corporation. Today Koreans extremely high costs of marketing and advertising.

For more information on units , and revised figures as net income , appear in the current month after completion of all financial audits .

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