Samsung estimates Q1 2015 Profits to drop by 30%

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Samsung releases guidance for Q1 2015 earnings.

Samsung is still suffering from the decline in smartphone sales. Today the Korean electronics giant released the earnings estimates for Q1 2015.

Samsung Electronics announced its earnings guidance for the first quarter of 2015.

Consolidated Sales: Approximately 47.0 trillion Korean won
Consolidated Operating Profit: Approximately 5.9 trillion Korean won

The above figures are consolidated earnings estimates based on K-IFRS. Korean disclosure regulations do not allow earnings estimates to be provided as a range. Therefore, the above figures are based on the median of the earnings estimate range, as given below.

Sales: 46.0 ~ 48.0 trillion Korean won
Operating Profit: 5.7~ 6.1 trillion Korean won

in Q1 2014, Samsung had an operating profit of 8.49 trillion Korean won. The drop year-to-year is a considerable 30%. Samsung has managed to counter smartphone sales drop with its semiconductor business, but necessary investments dampen this effect. Samsung is rumored to won back the Apple CPU manufacturing deal. Samsung is said to make the A9 for the next iPhone.

Now all hinges on the new Galaxy S6 and Galaxy S6 Edge this quarter to push Samsung’s profits up again. The new flagship Samsung Galaxy phones go on sale in the United States on April 10.

Samsung published the Earnings Guidance for Q1 2015 on the company’s Tomorrow site.

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