Friday, 1 May 2015

Samsung Profits Plummet After iPhone 6 Launch

People pose in front of projection of Samsung logo

Samsung's first quarter profits fell by 39% as mobile customers switched to the new big-screen iPhones.

Earnings from the South Korean firm's mobile business have been squeezed to less than half what they were a year earlier.

The company reported that its January to March profit was £2.8bn - down from £4.5bn. The figure is lower than analysts forecast.

Until the launch of Apple's iPhone 6 and 6 Plus, large screens were one of the features that set Samsung apart.

But since the launch of Apple's new device last autumn, Samsung has taken a hit.

While the company still sold more smartphones than Apple during the quarter, many of them were at the lower-end of the market with a smaller profit margin.

A hostess displays the Galaxy S6 edge

Apple sold 61 million iPhones in the first three months of the year, an increase of 40% from a year earlier, which drove another quarter of big profits.

Samsung, which does not disclose its smartphone shipments, is estimated to have sold 83 million smartphones during the quarter.

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