Samsung faces downfall on profitsTim Kennedy (Author) Published Date : Aug 02, 2014 02:29 ET
After moving fast in the smartphone industry business electronic giant Samsung Electronics have faced a slow down on their smartphone business and for the reason the firm has faced a 20% fall on their second quarter and the other reason behind this was the strong currency rate of Korea.
The Korean company made the profit of 7.7 trillion won in the previous year where on this year April-June period Samsung have gained the profit of 6.25 trillion won which is down comparing to previous year which was 17% less.According to their huge profits Samsung is rated as the biggest mobile handset maker in the world.
And the firm statement said, The second quarter was affected by several factors including the slow global sales of smartphones and tablets and escalating marketing expenditure to reduce inventory. On the other hand the growing strong currency of Korea is also a big reason for their slowdown in the handset business for Samsung.
During the last one year the Korean currency have gained to 11% comparing to US dollar while it rose to 7% comparing with euro which is a significant sign.And the reason behind the strong currency which effect the Korean firm is that Samsung is heavily rely on their export where the products goes all over the world where most of the transaction have made through Us dollar or euro.
The hike in Samsung Electronics was mainly helped by their smartphone sales which gave the company a big boost.Samsung have produced their Galaxy handsets which was the biggest hit among the mobile phone users all o0ver the world where the Korean company also surplussed Nokia one of the leaders in mobile phone business.
Samsung faces downfall on profits