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Samsung’s Profit Down, Lowest Since Q3 2011

Samsung released its financial results for Q3 2014 and it does not look good. The Korean electronics giant is still making profits but it is not what we expected. Samsung generated $44.7 billion in revenue, down from $56 billion in Q3 last year. Though that does not look so bad, but Samsung recorded its lowest profit since Q3 2011.
Samsung 2014 Q3 Profit
Samsung’s mobile division is its core money making organization. But in the last quarter the mobile division saw a 15% drop in sales. But the big problem is Samsung’ profit came down to $1,653 million, down from $4,179 million in Q2 this year and $6,350 million a year ago.

Though Samsung is finding all the issues and problems, why the profit came down so heavily, but from the charts it looks like Samsung is not selling that many phones in high-end as it was doing a year back. Most of the profit came from the low and mid range phones. Samsung’s tablet division saw some growth but it did not compensate the loss in profit in phone division.
Samsung 2014 Q3 Sales
Samsung’s TV division is also not doing so great and it recorded almost zero profit in that division as well. This is mainly due to increasing cost of display panels and weak demands for OLED TVs.

The only division where Samsung is looking very good is the semiconductor division. Samsung made huge profit and great sales in this area.

The coming quarter will be very challenging for Samsung when it will try to fix its existing problems and try to find out new profit generating areas.