Samsung Sees First-Ever Quarterly Loss - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud // Cloud Storage
News
1/26/2009
01:48 PM
50%
50%

Samsung Sees First-Ever Quarterly Loss

Plunging sales of appliances, liquid crystal displays, and memory chips led to Samsung reporting its first-ever quarterly loss of about $14.4 million.

Samsung is the latest consumer electronics company to be hit by the global economic slowdown, and it reported its first-ever quarterly loss

Due to decreased demand and sales of appliances, liquid crystal displays, and memory chips, Samsung posted a net loss of about $14.4 million for the fourth quarter of 2008. This is a stark contrast from the $1.59 billion profit it made for the same period last year, and the $863 million profit for the third quarter.

"The global economic slowdown had an adverse effect on consumer purchases of electronics goods in the fourth quarter, traditionally a strong period for electronics companies," the company said in a release.

The company is still the second largest cell phone manufacturer, trailing only Nokia, and it shipped 52.8 million handsets for the quarter. This represents a 14% rise from the same period last year, and Samsung shipped about 196.6 million units for the whole year. The company had success with touch-screen handsets like the Omnia, and its midlevel camera phones sold well in emerging markets.

But Samsung saw consumer demand dip for the mobile phone division, and the company is expecting that to continue for the year. Like other companies and industry watchers, Samsung is expecting the handset market to decline 5% to 10%, and it expects the first quarter to be especially hard hit.

Samsung previously operated separate divisions for chips, LCDs, cell phones, and consumer electronics, but it said it would reorganize into two major divisions to combat the slumping economy. Samsung will consolidate its businesses into a digital media and communications division that focuses on consumer products such as cell phones and televisions, and a device solution division that handles displays and memory chips.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll