Samsung mobile sales down 4 per cent, but still turning a huge profit
Samsung's quarterly earnings report has revealed a 4 per cent drop in mobile phone sales.
Samsung's quarterly revenues actually grew from 52.87 trillion won in Q1 of 2013 to 53.68 trillion won this quarter, of which 31.36 trillion is from the mobile business. But profits were down to 8.49 trillion won from 8.78 trillion won in the first quarter of last year.
READ: Samsung Galaxy S5 review
Despite these numbers, Samsung says its operating profit, the amount made after subtracting spend, was still up 18 per cent. Since Samsung said the drop was due to "weaker seasonality" it probably expected fewer sales - quarter to quarter - and spent less as a result. Samsung referred to this as "efficient management of marketing expenses".
It's a tough time to sell phones with Christmas gone and January frugality ruling. Plus most people expected the Galaxy S5 to be announced so would have held off buying a phone during Q1 altogether.
Samsung expect profits to ramp up in the second quarter as other phones using its displays are due to go on sale. TV sales are also expected to jump up as people upgrade in preparation for the World Cup.
Of course the Samsung Galaxy S5 will be expected to sell plenty. But with rumours of a better Galaxy S5 Prime on the horizon some people may still hold off to wait for that with its rumoured 2K display.