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Samsung's Q4 profit drops but beats forecast

Staff writer ▼ | January 29, 2015
Samsung Electronics Co. said its quarterly earnings dropped smaller-than-expected 27 percent. The company beat forecasts mainly thanks to solid performance of component businesses.
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Samsung said its sales of the Galaxy Note 4, its flagship big-size smartphone, increased from the third quarter. But said its overall smartphone sales during the quarter were between 72.2 million units and 75.1 million units, confirming analysts' forecast that Apple, at its record-high 74.5 million sales of iPhones during the same quarter, has narrowed its smartphones shipments gap with Samsung.

Samsung, the world's top smartphone maker, said that its October-December earnings were 5.3 trillion won ($4.9 billion), compared with 7.3 trillion won a year earlier.

Samsung's quarterly net income has dropped over a year earlier for four straight quarters. But the bottom line was a moderate recovery from the previous quarter's 4.2 trillion won and higher than analysts' forecasts of 4.4 trillion won, according to financial data provider FactSet.

Sales fell 11 percent to 52.7 trillion won from a year earlier while operating profit slumped 36 percent to 5.3 trillion won, in line with Samsung's preview earlier this month.

The Korean company's mobile business began to struggle in 2014, while Apple enjoyed record-high sales of the bigger iPhones that it released in September, which drove the stellar earnings that it reported on Tuesday.