We are in time for the large companies to present their fiscal results for the last months of 2013. Sasmung has shown the world its profits during the last quarter last year, and various data can be extracted from them. And it is that despite having achieved record profits, the net profit falls with respect to the same period of the previous year. The mobile division once again falls below expectations and from Samsung they already have their sights set on promoting new products. Let's go by parts.
Korean company sales have been 5,74% higher with respect to the end of 2012. This has meant that profits have risen 27,7% if we compare them with the same period of the previous year. However, the net profit obtained by Samsung has remained at 6.700 billion dollars, that is, 5,95% less, being below expectations.
Samsung needs to surprise again
There are various reasons that explain this reduction in profits, and a lot has to do with the Asian giant's smartphone division. And it is that during these last months the downward trend of its top-of-the-range terminals has been maintained. In this way, between the months of October and December of last year the company managed to put on the market a total of 9 million Samsung Galaxy S4. Although incredible data, the truth is that the forecasts pointed to 13 million, so real sales have been well below expectations.
It seems that Samsung's new flagship launched in mid-2013 has failed to get as many users to switch smartphones as the company expected. This is something that could already be sensed judging by the web traffic of Samsung in the United States, where we saw how the Samsung Galaxy S3 continued to have an important weight in the market. It remains to be seen if Samsung is able this year with its long-awaited Samsung Galaxy S5 to once again conquer the public to increase its mobile sales.
From the company they are aware of the situation, and that is why they insist on the need to further innovation in other fields related to mobile telephony. Of course, we cannot help thinking about the smart watches and other wearables that Samsung surely has planned for this 2014.
The competition is still there
Of course, the part involved in this reduction in sales of the Samsung Galaxy S4 is the competition, which during this last year has become even stronger with the new players arriving from the Chinese market.
Competitive prices on high-end terminals from companies such as Lenovo, ZTE or Huawei among others, have gotten many consumers to turn their attention not only to Samsung products. To all this, we must add that Apple continues to have a very important weight and a very loyal consumer for your iPhone.
Precisely Apple is also in another of the factors that has made Samsung lose net profit this last quarter. And is that the constant patent struggles between the two companies, they have been settled with several defeats of the Koreans.
Finally, among the reasons that analysts give for this drop in net profit, is the payment of high bonuses to some employees, something that could be corrected for the new fiscal year.
As the company itself recognizes, this first quarter of the year Samsung does not expect spectacular results that contrast with those recently presented. With Christmas just past and without any notable news announced, It will not be until the second quarter of the year with the Samsung Galaxy S5 already in the main markets When the company faces its big challenge, keep the profits at home.
Samsung proving that repeating design and not evolving along with innovation hurts them. And they are learning it the wrong way. Samsung has to get ahead of Apple inc.
is the case of 64bit. Samsung has to attract the view and the pocket of the consumer, that is, the user loyal to the brand and new users, and ensure user migration.
Samsung has to innovate with Galaxy S5 and Note 4. Flexible displays. New interface, 64 bit but 4gb. Para offers a real power of use. Not cosmetic like Apple. And more than 32 GB of memory. A single version for everyone. That is to say, it is water proof and in varied colors in a high-end version no 3 or 4. It is ridiculous. And it tires the user.
To end. Samsung must understand. That practically its users are already mature in the world of android, they know what they want. We expect from Samsung a terminal with quality finishes. Not fancy like iPhones. And that resists and innovates without losing the usability that it brings. Because in reality. Samsung is the smartphone par excellence and features.
Samsung, as I said, ate it with the S4 and is going to eat it with the S5. They do not improve in speed of Updates to top it off that you get defective phones after 3 months already says a lot about Samsung