Samsung announced its financial results for the second quarter of 2014, which showed the lowest profits in the last two years.
More specifically, Samsung's operating profit for the April-June period fell by 24.5% to $7.12 billion, while analysts on average predicted profits of $8.2 billion.
Samsung also admits that it has spent a lot of money on advertising for older devices that have remained unsold due to reduced demand, exceeding the budgeted funds.
On the other hand, the company "blames" developments in the foreign exchange market and the rising course of the won , which creates a competitive disadvantage for it against the Chinese Xiaomi and Lenovo, although the South Korean currency strengthened by 5%against the dollar in the second quarter.
At the same time, Samsung believes that increased sales of 5- and 6-inch phablets are playing a role in its decreased sales, but this is strange because the phablet category was pioneered by Samsung with the Note models, which are doing well in sales.
Source: e-pcmag.gr
