Samsung Profits Plummet Due to Heavy Competition

samsung

Samsung profits took a steep decline in the second quarter of 2014. The South Korean electronics company reported they could be as much as 25% lower than a year ago.

Samsung says one of the main issues that may have led to such a dramatic fall is their struggle to gain customers in Europe and Asia. The company reported strong competitions from companies like Apple, Lenovo, ZTE, and Huawei, which stifled their smartphone sales for the year. The company blamed a lack of tablet sales on the fact that most consumers take a longer time to upgrade their tablets than they do their smartphones.

Samsung smart devices are doing well as a whole, but they are not necessarily commanding as much of the market as they did last year. With a number of new smartphones scheduled to be introduced in 2014, it is likely that Samsung will continue to struggle to maintain its leadership position.

Samsung is looking to lower its marketing costs as a way to drive up profits for the future. It is also hoping that the launch of the much anticipate Galaxy Tab S will boost their earnings in the coming months.

About Lynn Oldshue

Lynn Oldshue is a PR professional who has worked with the Birmingham Zoo, Coca – Cola , the Alabama Theatre, and the Saenger Theatre. She has covered personal finance issues for 10 years. Lynn can be contacted at [email protected]