Smartphone Brands, Except Apple, Report Declining Profitability
Smartphone Brands, Except Apple, Report Declining Profitability
  • Korea IT Times (info@koreaittimes.com)
  • 승인 2014.02.07 20:05
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SEOUL, KOREA - The world’s major smartphone makers, except Apple, saw their profitability decline in the U.S. market in the fourth quarter of last year. Samsung Electronics kept its operating profit steady but its profitability deteriorated. LG Electronics, Nokia, Motorola, and BlackBerry all remained in the red.

As consumer demand for smartphones shift from premium to mid- and low-end models, their average sales price declined. Other factors include stiffer competition and hikes in marketing expenses.

Apple achieved an operating profit-to-sales ratio of 30.3 percent for the fourth quarter of last year, up 3.6 percentage points from a quarter ago. During the fourth quarter, Apple posted sales of US$545.12 trillion and an operating profit of $17.21 billion.

Samsung Electronics’ IT & Mobile division, which is responsible for smartphone business, saw its operating profit-to-sales ratio slip by 2.2 percentage points on a quarter-to-quarter basis to 16.1 percent.

The IM division posted sales of 33.89 trillion won and an operating profit of 5.47 trillion won, down 7 percent and 18 percent, respectively, compared to a quarter ago.


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