Robyn Mak on how Samsung plans to return to higher profits.
Samsung Electronics may be Apple’s archrival, but the South Korean giant is looking more and more like chipmaker Intel. While smartphone sales are sliding, Samsung’s chip business is powering its bottom line. Future growth may depend more on components than on competing with the iPhone.
Samsung’s profits have been down for a couple of years.
Though the $154 billion tech conglomerate is still the world’s largest handset maker, it is struggling for growth. Samsung is expected to sell just 75 million units of its flagship Galaxy model this year, down from 107 million two years ago… Margins have also taken a hit: operating profit for handsets and tablets in the second quarter of this year was less than half the figure for the same period of 2013.
Copying Apple hasn’t been all that good for Samsung’s profits.