Samsung Electronics has released its financial results for the second quarter of 2014, showing the first drop in net profit in three years for the Korean electronics giant, and a slowdown in its smartphone sales. The company announced it had made a net profit of 6.25 trillion won ($6.1 billion), down from 7.77 trillion won ($7.58 billion) last year. It also recorded an operating profit of 7.19 trillion won ($7.02 billion) in the period — a 15 percent drop from last quarter — on revenues of 52.35 trillion won ($51.02 billion). The new figures mean Samsung's operating profit has dropped almost 25 percent from the same quarter last year, falling from 9.53 trillion won ($9.27 billion) in the second quarter of 2013.
The reason for the decline? Samsung blames increased competition in China and Europe, currency exchange, and Galaxy S5 production costs, and they don't foresee any marked improvements coming next quarter either, because, well competition is still going to be a bitch apparently. Not that any of this means that Apple shouldn't still be following Samsung's revenue reducing, profit shrinking strategy, right every Apple analyst in 2013?