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Samsung profit down on slowing smartphone sales

2014-01-24 33 Dailymotion

Samsung has posted its first quarterly profit decline in two years .. <br /><br />The world’s biggest smartphone maker suffered slowing sales of those handsets due to strong competition from Apple’s new iPhones during the year-end holiday period in the United States and Japan.<br /><br />Operating profit at Samsung’s crucial mobile phone division dropped 18 percent from the previous quarter.<br /><br />Other factors were the payment of a one-off special bonus to its staff and the strength of the Korean currency – the won. <br /><br />To appease investors Samsung almost doubled its full-year dividend to shareholders.<br /><br />“Our goal on dividend payout for this year is to have that significantly increase from 2013, but I can’t say for sure how much we’ll be paying,” Robert Yi, head of Samsung’s investor relations, said.<br /><br />The company has been reluctant to change its payout policy largely because of a need to build funds to secure future growth.<br /><br />Samsung’s smartphone market share will be challenged this year as Apple starts selling iPhones via China Mobile, the world’s largest carrier in terms of subscribers. <br /><br />Apple is also widely expected to release iPhones with big-screens, a key feature of Samsung’s Galaxy range.

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