Samsung Profits are Down in Q1 2015

According to reports, Samsung’s overall profits are down but they hope their Samsung Galaxy S6 will change all of that.

When we look back at the year 2014, we will see the rise of Apple. Apple released their iPhone 6 and 6 plus in 2014 and that was very damaging for the Korean company. The main reason Apple did so much damage to Samsung was because they started to make big 5 inch screen phones which everyone is used to these days.

When they made these giant phones, many android users shifted towards Apple. Whereas Apple fans loved it when their favorite company started to make big phones. So Samsung saw a decrease in their sales of their Galaxy S5 and the Samsung Galaxy Note Edge.

People started preferring the iPhone 6 and iPhone 6 plus over the Korean company because all of us already knew that Apple made quality products but the main problem with them was that the products were coming in really small sizes.

Samsung’s last quarter of 2014 did really badly and the company tried to make up from the losses by stopping pay for all Samsung employees. Now 2015’s first quarter suggests that the Korean company is doing well when compared with the last quarter but their overall profits are still down.

Samsung earned 6 trillion won from January to March 2015 which comes under their operating profits. Last quarter the company earned 5.3 trillion won. But that is still not enough for them as last year they earned $8 billion.

We have seen a sudden shift in Samsung’s mobile division in the past year. Samsung did manage to recapture the number one position from Apple in the list of manufacturers with the biggest shipments for the first quarter.

Samsung lost its profit when it came to the sales of feature phones and tablets. This is why they are not making a lot of other phones and are concentrating on their main smartphones. Samsung has even started work in making memory chips. And with that they have started making their own Exynos processors for their flagship devices.

Sources: Samsung , Reuters