SAMSUNG Electronics, the division of the South Korean tech superpower responsible for smartphones and household appliances, saw profits slip 3.3 per cent during the quarter to March as its margins were squeezed by competition to its Galaxy phones.
Profit from Samsung’s mobile division was 6.43 trillion won (£3.71bn), down 1.2 per cent from 6.51 trillion won a year earlier, representing 58 per cent of the group’s total profit.
Samsung said it expects weakness in the smartphone market to continue into the second quarter with increasing competition in the low and mid-range as competition intensifies with the launch of new handsets from its rivals.
Revenues rose to 53.68 trillion won, up from 52.87 trillion during the same period last year, but operating profits fell 3.3 per cent to 8.5 trillion won against guidance of 8.4 trillion won. Shares fell 2.02 per cent in Korea to 1.36m won.