Samsung’s profits drop by 11%, as Apple breaks records

Event Samsung

Today, Samsung Electronics has announced that it has made an operating profit of 5.29 trillion won ($4.87 billion) with revenues of 52.73 trillion ( $48.6 billion) last quarter. Even if these sound like big number, it should be noted that the company made a profit of 8.31 trillion won from 59.28 trillion won revenue last year in same quarter. The current results reflect respective drops of 36 and 11 percent. In the same Quarter, iPhone maker Apple Inc has registered a record-breaking profit of up $18 billion.

This comes at a time when Samsung is seriously considering in changing its smartphone strategy, as the mobile division is still down 64 percent in operating profit year-on-year. Samsung recently announced that it will officially drop its dependence on 3rd party chips due to technical reasons. They are hoping their mobile division to grow in this year, with emerging markets like China and India and the continued global rollout of LTE highlighted as major targets.

In their statement, Samsung emphasized that it will use “new materials, innovative design, and differentiated features” in its upcoming products. Samsung also promises a “diversified” wearables lineup with “unique designs.”

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We have already seen Chinese companies like Xiaomi over take Samsung in China, and on the Apple camp, the company registered a $18 billion on $74.6 billion in revenue, far above what it forecasted back in October, and marking the highest quarterly profit so far. Apple sold 74.5 million iPhones, 21.4 million iPads, and 5.52 million Macs last year.

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Source: Samsung Apple earnings (Businesswire)