Samsung’s Profit Rises On Mobiles, But Falls On Other Products

The South Korean technology giant is gaining immense profit on its smartphones but is losing its revenues from its other electronic goods. Samsung’s smartphone’s are gaining huge popularity globally, but sadly same cannot be said for its other products.

According to a report, Samsung’s flat screen unit had huge losses in its second quarter and its other electronics suffered same kind of damage. This may be partially due to better alternatives available in the market which provide same features but at comparatively lower costs.

Furthermore, Samsung has failed to provide its users with new services like other Tech giants, Apple and Google, are providing. It is less likely that Samsung will be able to get customers like Apple has got.

Samsung has said that its sales were not good because the whole chip market is suffering from low demand as users get more and more inclined to smartphones as compared to LCDs, LEDs and computers.

If Samsung wants to make its sales comparative to the other manufacturers, it seriously needs to consider providing better services at an affordable price.

Despite its heavy loses, Samsung is going to increase its investment in semiconductors which it thinks will boost up its profits.

Photo Courtesy of Jami3.org
Photo Courtesy of DailyM = Differentieel + JeeeM

Advertisements

Sales Up For Amazon But Profit Goes Down

Amazon announced that its sales were up nearly 50% in the second quarter thanks to its E-reader Kindle which is doing fairly well business in North America. It also said that though sales were on rise, profit figures, instead of improving, went down.

Amazon announced on Tuesday that due to its large investment in business, its profit figures were not upto to the mark. Amazon’s huge leap in sales is mostly due to Kindle, which is proving to be the best product by the company so far.

According to Amazon, its revenue increased to a bulky $9.91 million but its profit fell down to$191 million. Amazon co-founder Jeff Benzos said that,”Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade.”

This Seattle based company earlier made money by selling and trading various items online. Recently it launched an E-reader by the name of Kindle which is available in both 3G and Wi-fi models. Its 3G based model is carried by the American telecom giant AT&T.

Amazon is currently investing heavily in China, where it has seen tremendous growth. It is rumored that Amazon’s new Kindle models will be released first in China.

Will investment in the most populous country with cheapest labour available help Amazon’s growth in the long term?

Photo Courtesy of soumit
Photo Courtesy of TAKA@P.P.R.S