Samsung Mobile 2015 Performance
The IM Division posted 25.00 trillion won in consolidated revenue and 2.23 trillion won in operating profit for the quarter.
A slight QoQ decrease in smartphone shipments due to a year-end inventory adjustment and an increased portion of the mid- to low-end products led to the decline in sales while a seasonal increase in marketing expenses slightly impacted profit. As for tablets, quarterly shipments and sales increased due to seasonal demand and steady sales of the Galaxy Tab A and Tab S2.
In the first quarter, although slowing demand for smartphones and tablets is forecast due to seasonality, and in spite of slowing shipments of Samsung smartphones, an enhanced product mix with the introduction of new line-ups, such as the Galaxy A (2016) series, is expected to help stabilize sales and profitability.
As for the outlook for 2016, Samsung expects single-digit percentage growth in both the smartphone and tablet categories amid softening demand and intensifying competition. Despite this challenging environment, the company will focus on increasing smartphone shipments and maintaining a double digit margin through releases of competitive devices and an optimized product portfolio.
Specifically, in the premium smartphone segment Samsung aims to reinforce its market leadership and drive growth with differentiated and innovative products. For the mass market segment, the company will focus on increasing shipments and profitability through competitive product line-ups.
Meanwhile, tablets and wearable devices are expected to expand their contributions to overall business performance while new services such as Samsung Pay will continue to be developed.
As for the Networks Business, continued roll out of 4G LTE services in global markets helped enhance its earnings for the quarter. Looking ahead, Samsung will look to build on its experience and actively expand its LTE services globally.