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Samsung Q3 Profits Plunged 60% After Poor Smartphone Sales

Samsung has posted its lowest quarterly profits in 3 years, as it reveals that their Q3 profits for 2014 have fallen by 60%. The Korean manufacturer cited poorly selling smartphones as its biggest reason for the sharp decline in profits. With a newly launched Galaxy Note 4 in Q4 it is not likely that a single phone could turn around the company’s total outlook, but Samsung still brought in roughly $3.2 billion in profit so they aren’t exactly hurting.

Samsung Q3 Profits Plunged 60% After Poor Smartphone Sales

Samsung Galaxy Note 4

Samsung reported a 60% drop on Q3 profits, bringing them to a 3 year low. (Image from Samsung)

One of Samsung’s biggest challenges is that they seem to be highly competitive in the high-end mobile device market, but they lose a lot of business in the low cost market. They have made some attempts at introducing less expensive devices like the Galaxy Mini, but it did not perform very well. Another key factor is that from July to September, Samsung did not introduce any new significant mobile devices. The market of Android devices is flooded with so many options that being competitive means staying the “flavor of the week.” The Apple iPhone may have created a market all its own, and Samsung has yet to build the kind of loyalty among its Galaxy device users over the past few years.

Without a unique operating system to set it apart, Samsung is really just a fancy device manufacturer that offers an interface experience much like other available phones. Jumping into creating their own operating system may not be the best bet either, as other manufacturers such as Windows, Amazon, and Blackberry have lost a lot of ground with their proprietary platforms. In today’s market it seems to be Android or iOS, and consumers are slow to adopt anything else.

Samsung’s consumer confidence still remains high coming into the holiday season in Q4, and it is likely that they will still perform well during this quarter. Even though they still don’t appear to have any tricks up their sleeves, they still remain one of the most trusted names in personal consumer electronics.

Samsung Q3 Profits Plunged 60% After Poor Smartphone Sales.

About Steven Kenniff

Lives in Phoenix, AZ. Graduated from Arizona State University in 2005. Writes for American Live Wire, GM Roadster and Northstar Media