According to Bloomberg News, Samsung Electronics announced today the financial report for the second quarter of fiscal 2014. In order to counter the competition from Apple and Chinese manufacturers, Samsung increased its marketing spending on cheap smart machines, resulting in second-quarter net profit that fell short of analysts' expectations.
Samsung said in a document today that, as of the second quarter of June 30, net profit was 6.18 trillion won (approximately US$6 billion) excluding minority interest. The average estimate of 17 analysts surveyed by Bloomberg, Samsung's second quarter net profit of 6.83 trillion won.
As Chinese companies such as Xiaomi and Lenovo use low-cost mobile phones to attract consumers, and Apple wins high-end user groups through cooperation with China Mobile, Samsung is trying to maintain its market share in China. The appreciation of the won hurt Samsung’s overseas sales, and the company’s display division was also affected by the slowdown in mobile phone growth.
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