SEOUL, KOREA - Samsung Electronics reported earnings shock in the fourth quarter of last year. The company revealed its preliminary fourth-quarter results on January 7. It posted sales of 59 trillion won and an operating profit of 8.3 trillion won for the fourth quarter, down 0.14 percent and 18 percent from a quarter ago.
Key factors behind the disappointing results include the deteriorated profitability of its IT & mobile business. This business chalked up an operating profit of 5.4 trillion won in the fourth quarter, down 19 percent from a quarter ago.
The IM business, which led Samsung’s overall growth on the back of the popularity of Galaxy smartphones, ignited market concerns as its profitability declined from the third quarter. As the world’s smartphone market entered the phase of maturity, the mainstream models are shifting from high-end models towards low-and medium-priced models.