Samsung Electronics has announced its earnings for Q4 ending 31 December, 2014.
Net profit was 5.35 trillion won (approximately $4.88 billion) and operating profit stood at 5.29 trillion won (approximately $4.83 billion). Total revenues were up 11% quarter-on-quarter at 52.73 trillion won (approximately $48.11 billion), according to Samsung Tomorrow.
Operating profit saw an increase of 1.23 trillion won (approximately $1.12 billion) quarter-on-quarter.
However, the company witnessed a decline in operating profit compared to the corresponding quarter last year. It posted operating profit of 8.3 trillion won (approximately $7.5 billion) from 59.28 trillion won (approximately $54 billion) during the same period last year.
Samsung's earnings from its mobile division declined 73.9 percent to 1.75 trillion won (approximately $1.60 billion) in Q3 of 2014, its worst since the second quarter of 2011, but it did better in Q4, thanks to Galaxy Note 4, registering 1.96 trillion won (approximately $1.79 billion) in operating profit from consolidated revenues of 26.29 trillion won (approximately $24 billion).
Earnings from mobile division are expected to grow in 2015 with demand for smartphones likely to increase in emerging markets like India and China, and 4G LTE services expected to expand.
"Through new materials, innovative design and differentiated features, competitive products will be introduced to drive smartphone sales, while efficiency will be enhanced across R&D and marketing to increase profitability," reported Samsung Tomorrow.
The dip in Samsung's Q3 earnings was mainly due to poor sales of its flagship smartphone, the Galaxy S5, which received negative response from many gadget lovers and Samsung fans, as it failed to have many features that were speculated before its release.
Now, all eyes are on the upcoming Galaxy S6, which is expected to be unveiled at the Mobile World Congress (MWC 2015) to be held between 2-5 March. Samsung will surely look forward to the device to boost its earnings in the second and third quarters of 2015. Reports on the device that have appeared so far, suggest that it will have significant changes in features and design.
