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.