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Samsung's profit fell by 49%


Samsung's profit fell by 49%
 
 
Samsung has released a report on the results of the third fiscal quarter of 2014, reporting on the fall of profits compared with the same period a year earlier to 48.8% - up to $ 4 billion. The dramatic decline demonstrated the mobile division of the Korean corporations, financial indices which fell by 74%, which exceeded analysts' forecasts.

This sharp drop was a record since 2011, according to The Wall Street Journal. Financial achievements Samsung were low due to increasing competition from Chinese brands, as well as strengthening the position of some of the oldest and major players in the mobile market. In China, we recall, the Korean corporation ceded first place of Xiaomi, which is currently the leader of the local market of smartphones.

It is worth noting that in the first half of October, Samsung warned of decline in quarterly profit in two times. As the cause is called the increase in marketing costs, as well as the reluctance of consumers to buy new models of smartphones (these analysts explain the relatively low demand for Galaxy S5).

Samsung is among the five biggest sellers of smartphones, but the company was the only one who showed a record decline in sales. For comparison, in the third quarter, Apple, Xiaomi, Lenovo and LG, according to IDC, achieved 15% growth in shipments of mobile devices in retail chains.
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