Samsung recently reported its fourth quarter 2013 earnings, and the company failed to meet analyst estimates for the quarter. The result is largely due to an increase in competition from all angles, particularly in its mobile business which usually helps bump the figures on the firm’s balance sheet. Apple is fighting in more markets than ever, putting more pressure on Samsung despite its array of smartphones at every price point.
Samsung’s net income wasn’t particularly bad – the company reported 7.22 trillion won for the quarter (about $6.7 billion) — but that figure did fail to meet the 8.2 trillion won analysts were calling for, according to MacRumors. Operating profits, however, were down for the first time since 2011. Samsung doesn’t expect the trend to change in Q1, but does expect to pick up some steam during the second half of this year. In terms of its mobile business, we hope to at least see the Galaxy S5 by that time. Recent rumors have suggested it’s due out at by April. Also, according to The Financial Times, a chunk of the decline in profits apparently came from employee bonuses that were promised way back in 1992.
In an interview with Reuters, Samsung said it will spend less on marketing in 2014 than it did in 2013, but it will try to make its marketing much more efficient than it did last year. We’ll see what Samsung does to answer its current challenges during the coming months.