SEOUL: Samsung Electronics reported a near 20% decline in the second quarter net profit, due to increased competition from cheap Chinese devices in the key smartphone sector and a surging Korean won. The South Korean electronics giant posted a net profit of 6.25 trillion won – its lowest figure for two years and down 19.6% from the same quarter last year. Operating profit stood at 7.19 trillion won, down 24.6% from a year ago, while sales tumbled 8.9% to 52.35 trillion won. “The second quarter was affected by several factors including the slow global sales of smartphones and tablets and escalating marketing expenditure to reduce inventory,” the company said in its earnings report. “The appreciation of the Korean currency also chipped away at this quarter’s operating profits, which amounted to about 500 billion won in missed revenues prompted by the foreign exchange market,” it said, adding that the second half of 2014 would “remain a challenge”.
Published in The Express Tribune, August 1st, 2014.
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