Samsung has forecast a 37% fall in profit for the fourth quarter of 2014, the manufacturers preliminary earnings guidance revealed.
The Korean firm announced that it was expecting a consolidated operating profit of approximately KRW 5.2trn (£3.14bn) compared to last year’s figure of KRW 8.3trn (£5.02bn). The figure does improve on its Q3 figure of KRW 47.45trn (£2.83bn).
The manufacturer is due to release its full financial results later this month.
Commenting on Samsung’s results Marco Veremis, CEO at Upstream said: ’Samsung has reported its latest disappointing results today, with its pre-earnings guidance of a 37% fall in quarterly operating profit year-on-year. A large part of the decline in figures has been poor performance in markets like China, where it is under increased competition and pressure from local brands like Xiaomi and OnePlus that are producing high-end devices for a fraction of the cost to the consumer.
‘The battle is certainly not lost for Samsung. There is still an appetite for these top of the line devices in China, as research we conducted with Ovum reveals Samsung is the second most recognised Western brand in China and 32% of consumers aspire to make their next device a Samsung product. However, 85% of Chinese consumers choose mobile content predominantly because it is familiar and easy to understand, something many global companies often struggle with and comes much more naturally to local brands. One route to success is already being used by Apple in China, that being to team up with a local operator to provide localised content that better resounds with Chinese consumers and potentially see an uptick in performance in 2015.’
Recently Samsung appointed a new head of its UK Mobile division bringing in former Nokia man Connor Pierce.