According to an earnings guidance issued by Samsung Electronics for the first quarter, the tech giant, which has witnessed a dip in its smartphone sales due to increasing competition, may see another drop in operating profit.
The company said that it expected an operating profit of about 5.4 billion dollars or a 30 percent year-over-year decline in the first quarter, reported Tech Crunch.
The figure would not reverse the dip in the firm’s earnings over the last 18 months but it is definitely better than the 30 percent decline predicted by analysts polled by Dow Jones.
Samsung also said that it would expect revenue of about 43.3 billion dollars or a 12.4 percent drop from the previous year.
As companies like Xiaomi ascend in the smartphone market, Samsung’s smartphones sales continue to decline. In the fourth quarter earnings report, the company had revealed that mobile sales accounted for just 58 percent of Samsung’s total operating profit last year, a noteworthy decline from 70 percent in 2013. (ANI)