Samsung Profits Fall First Time in Two Years

Samsung is going to report a decline in its quarterly profits for the first time in past two years due to sluggish smartphone sales and a special one time bonus to employees as it starts a new year of even tougher competition with arch rival Apple.

Samsung, known for its flag Galaxy Android smartphones, has said that its operating profit for the quarter ending December fell by 6 percent compared with the corresponding quarter in the previous year and stood at 8.3 trillion won (£4.65bn).

The profit decline was partly attributed to an 8oo billion won one time special bonus to its employees in memory of the change in the managing strategy by chairman Lee Kun-hee 2o years ago which the company sees as the starting point for its recent growth.

The company also said that a stronger won also was responsible for lower profits.

The share price of Samsung has declined by 8 percent during the past month over concerns about its sluggish growth of smartphones.

Samsung said in a statement that “It will be challenging for Samsung to improve its earnings in the first quarter as the weak seasonality of the IT industry will put pressure on demand for components and TV products.”

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