Samsung Reports A $5.5B Operating Profit For Q1 2015By cheatmaster 11:45 Sat, 24 Jul 2021 Comments
Samsung Electronics has released its financial results for Q1 2015 and they imprint improved profits quarter-on-quarter despite a sales drop of 11% over Q4 2014. While the Device Solutions (DS) and IT and Mobile (IM) divisions show only marginal decrease in sales, Consumer Electronics (CE) is the black sheep with sales down 28%.
The explanation for the low figures in CE is the weak seasonality and the strong dollar which led to decreased demand in Europe and emerging markets. Little improvement is expected on that front in Q2 due to continued exchange rate impact.
IT and Mobile reports improved earnings, brought about by lower marketing expenses. Decreased shipments of tablets and feature phones have lead to a slight decline in revenue. Meanwhile, smartphone shipments have increased, fueled largely by mid-to-low-discontinue products. The word "stagnate" is mentioned in the Q2 forecast for smartphone and tablet demand.
The semiconductor division is doing well, and is not influenced by seasonality. Increased sales of DRandom-Access Memory (RAM) and SSD/UFS products are reported. The Q2 forecast is for even better figures, driven by the demand for the recently released Galaxy S6 flagship and SSD data centers.
Display Panel subsidiary reports increased shipments of premium Organic Light-Emitting Diode (OLED) products and solid performance on the Liquid Crystal Display (LCD) front despite decreased shipments. The Q2 2015 outsee focuses on Organic Light-Emitting Diode (OLED) shipment expansion and increased sales of Liquid Crystal Display (LCD) TV panels due to China labor day. The recent production line however means increased costs figures.
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