HONG KONG: Samsung Electronics posted a near 40 percent fall in first quarter net profit, missing analyst estimates despite a surge in memory chip demand that cushioned a slump in smartphone sales.
Facing increasing competition from Apple and smaller Chinese manufacturers, the world’s top handset maker reported a net profit of 4.6 trillion won (US$4.3 billion) for the January-March period, down 38.9 percent from a year earlier.
It was the fourth straight quarterly decline in net profit and missed the 4.9 trillion-won average of 23 analyst estimates compiled by Bloomberg News.
Operating profit also fell 29.6 percent on-year to 6 trillion won, largely in line with the firm’s earlier forecast.
But in a sign that the South Korean electronics giant might be turning a corner, the operating profit was up 13.1 percent from the fourth quarter of last year.
The firm’s latest earnings still stood in stark contrast to Apple which this week reported a 33 percent surge in net profit to US$13.6 billion in the first quarter thanks to blockbuster sales of the iPhone 6, especially in the Chinese market.
In its earnings statement, Samsung said it expected overall earnings to increase in the second quarter as premium smartphone sales enter “into full swing.”
