KOREAN PHONE MAKER Samsung's mobile division saw a 62.4 percent dip in profits in the fourth quarter owing to a decline in smartphone shipments.
Samsung had predicted that its mobile division would have a rough fourth quarter after the arrival of the iPhone 6, and it wasn't wrong.
The firm boasted that sales of the Galaxy Note 4 increased during the quarter, but profits from the mobile business fell from $5bn in the year-ago quarter to $1.8bn in the December quarter.
This is likely to be the result of slower than expected sales of the Galaxy S5 smartphone which, according to reports, are 40 percent lower than Samsung had expected.
Samsung didn't reveal exact smartphone sales figures, but Strategy Analytics claims that the firm shipped 95 million smartphones during the fourth quarter, down from 188 million in Q4 2013.
Samsung expects its failing mobile business to return to growth in 2015, highlighting emerging markets like China and India and the continued global rollout of LTE highlighted as targets.
The company seemed to confirm that the rumoured Galaxy S6 will come clad in metal, saying during an earnings call that it will use "new materials, innovative design and differentiated features" in its upcoming products.
However, Samsung doesn't expect to turn its mobile business around any time soon, and has warned investors that the March quarter is not likely to be much better.
"Expect decreases in smartphone and tablet demand under weak seasonality," the firm said, adding that it will "strive to improve earnings with smartphone shipments growth due to the expansion of A series [middle-tier phones] etc".
While Samsung's mobile division struggled, the firm noted that sales of its tablet devices increased quarter on quarter owing to the popularity of the Galaxy Tab 4.
Samsung's Display Panel division also experienced growth after "strong" LCD sales, and the company's memory business saw sales grow by 24 percent. µ
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