Samsung confirms first annual profit fall for three years

DetailsRebecca Hawkes | 09 January 2015

Samsung Electronics has reported its first annual profit decline since 2011, though improvement in the fourth quarter hints at increasing stability of sales.

The South Korean consumer electronics giant lost market share for the three quarters up to July-September, with analysts suggesting smartphone competition from Apple's iPhone 6 and China's Xiaomi would have continued this trend to December.

Samsung said its fourth-quarter operating profit is likely to be KRW5.2 trillion ($4.74 billion), with full results to be announced later this month.

The company's 2014 operating profit is expected to be about KRW24.9 trillion ($22.6 billion), down 32% from 2013, based on preliminary figures. It marks a rebound from the third-quarter's KRW4.1 trillion profit which was the firm's lowest quarterly result in more than three years.

Analysts suggest a robust demand for components such as memory chips and improvements in the mobile business through new mid-to-low tier smartphones will improve Samsung's outlook in 2015.

This week Samsung unveiled its UltraHD TV technology and the formation of an alliance to establish premium quality standards. With the announcement, the company said it is strengthening its commitment to high quality Ultra HD content and devices.