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Samsung Misses Q4 2015 Profit Forecasts; Profit Up 15% YoY

January 8, 2016 - Written By Kristijan Lucic

Samsung is the largest smartphone manufacturer in the world, as many of you know, This Korea-based smartphone OEM has been quite successful in terms of sales for a long time now, even though their profits started to fall a while back. The company has decided to alter the design of their smartphones in order to offer something new to consumers and continue increasing their profit. Either way, Samsung is earning a lot of cash from their ‘Mobile’ department, but it seems like the company missed their profit forecast for Q4 2015, and the ‘Mobile’ department is probably an important factor here, read on.

The company has released their earning guidance for Q4 2015 today, reporting an operating profit of 6.1 trillion won ($5.08 billion). This information is actually based on the company’s estimated sales which are worth 53 trillion won ($44 billion). Now, Samsung’s operating profit is 15.3% higher than it was in Q4 2014, which is good, but is 17.5% lower than it was in Q3 2015. Now, you can look at this info the way you want, of course. If we were to compare this to the company’s results from the same period in 2014, then Samsung did really well this year, but if we compare it to the third quarter last year, well… either way, the company has earned a ton of cash last year, and this year will be interesting, for sure. The company is expected to announce quite a few Galaxy S7 devices this year (4 or 5 according to rumors), and those handsets will arrive in about a month or so. Samsung will almost certainly going to release something new and try to innovate, not to mention they are planning to tackle emerging markets and basically try to compete with various Chinese companies.

It is also worth mentioning that Samsung Mobile is now under a new leadership, J.K.Shin stepped down last year, and Dongjin Koh took over. The company’s new president already announced that the company will focus on software and services in 2016, which probably means we can expect further TouchWiz improvements. All in all, 2016 will surely be an exciting year for Samsung, and it remains to be seen how will they compete with price aggressive companies.