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After profits fall again Samsung counts on a World Cup sales boost


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After profits fall again Samsung counts on a World Cup sales boost

Samsung has posted its second straight fall in quarterly profit.

For the January to March period, operating profit was down 3.3 percent from a year earlier. Profit in its key mobile phone division fell 1.2 percent

But the South Korean electronics giant said it expects stronger earnings between April and June.

It believes there will be a pickup in sales of high-end televisions and smartphones which should boost growth.

That optimism is based on the World Cup in Brazil.

Samsung is predicting better sales of screens and smartphones, as fans splurge on devices like ultra high-definition TVs to watch the action.

But analysts are not so sure saying a dearth of UHD-standard content and high prices could limit the upside for sales of premium devices around the World Cup.

On the mobile front, the world’s biggest smartphone maker is now banking on its premium Galaxy S5 handset, launched earlier this month, to outsell its predecessor and widen profit margins, a senior executive told Reuters.

However the firm is under pressure as its broad range of low-end phones is being caught by the improving quality of Chinese-made offerings, while the large-screen advantage of its top-end phones is expected to come under threat from Apple’s next iPhone.

with Reuters

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