A PYMNTS Company

Asia: Samsung says competition is digging into profits

By  |  July 8, 2014

Samsung told its investors to keep their optimism in check this week as it warned that intense competition in Asia’s smartphone industry is causing Samsung’s profits to take a hit.

The South Korean company offered an early second-quarter earnings guidance on Tuesday and announced that its profits may have fallen by up to 26.5 percent in the quarter.

In its announcement, Samsung said “intensified price competition” among Asia’s mobile phone manufacturers lead to the lowered revenue. The company also said it has had to spend more money on marketing efforts because of the intense competition.

While Samsung remains the market leader for smartphones and other mobile devices, the firm is meeting increasingly harsh competition from rival Apple.

In China, say reports, which remains the world’s largest smartphone market, companies including Lenovo, Xiaomi, Huawei and others are also challenging Samsung’s dominance.

Full content: eWeek

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.