Samsung Electronics First Quarter Earnings FY15

The Galaxy S6 producers have faced a decline in earnings in the first quarter of 2015 due to increasing competition.

Samsung Electronics was seen presenting the first quarter earnings of the company for the fiscal year of 2015 on April 28, 2015. The company was seen experiencing a dip in the operating profit which was reported in the earnings call to be $5.63 billion whereas the revenue generated came around at $44 billion. This has been noted as a drop in the operating profit as in the same quarter the year before; the profit had turned out to be around $7.8 billion.  Analysts have also agreed upon the fact Samsung Galaxy did not report quite as huge earnings as Apple, which was seen doing an extra ordinary job in the second quarter’s earnings.

The net profit that was generated by Samsung came around 4.63 trillion won which makes it around $4.35 billion. This marked a drop as well as the previous year’s first quarter reported net profit of 7.49 trillion won which makes it a loss of 39 percent.

Samsung gave in a guidance report only a month before the earnings call and it became evident in the predictions of the firm that it is expecting the net profit to come around 5.9 trillion won. However, the Korean company not only fell way below its own expectations, it also reported lower profit than what was expected by the analysts.

The revenue that was reported by Samsung Electronics for 1QFY15 fell by a massive 12 percent coming around at 47 trillion won.

There are many reasons why the smart phone makers have witnessed such a blow in the earnings for the quarter and one of them is that the exceptional sales that Apple was seen doing in the same quarter affected the sales of Samsung in the most adverse way. Other Android companies have also been gaining momentum which is why a dip has been experienced by the Galaxy S6 makers.

As for the second quarter earnings, Samsung was seen discussing its plans to grow its business more by providing memory chips to different smart phone companies and this is bound to help the decline in sales that was experienced in the first quarter.