Samsung bets on new phones to reverse profit slump

In the smartphone market is raging a tough contest. This is reflected in the first quarter market leader Samsung also reflected in earnings. New models will be the turning point.

Smartphones sold more than the competitors despite Apple has the long-standing market leader Samsung clearly earned less at the beginning of the year. The surplus in the first quarter 2015, the year-on-year by 39 percent to the equivalent of around four billion Euro has fallen, the leading South Korean electronics manufacturer announced on Wednesday.

The tough competition in particular profit in the Division IT and mobile communication (smartphone) of the world's largest producers of memory chips, mobile phones and tvs melt away quickly. The operating profit of the division fell by more than half of around six to three billion euros.

Prices fall on a broad front

The Group's sales revenue fell by more than twelve percent. In comparison with the sales of smartphones has increased for the fourth quarter 2014, it said. But the average selling price for smartphones as well as the sales of mobile phones and Tabletcomputern is down. In addition, the paragraph according to the information provided above all devices from the middle and lower-priced segment driven, in which the profit margins are not very high.

Market analysts estimate that more customers for the expensive iPhone-6 models of Apple have decided. The South Koreans were in the first quarter due to the amount of the competitor Apple smartphones sold again from the throne. According to estimates by market analysts sold Samsung in the first three months of this year 83.2 million Smartphones. That was 24 percent of worldwide sales, the South Korean Yonhap news agency quoted the company strategy analytics. Apple had come to 61.2 million devices. Thanks to its iphone Apple jumped the profit in the first three months of 2015 by a third to 13.6 billion dollars.