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Global Economy Check - Samsung Profit Drops by 60%

This is real evidence that the global economy is not really totally healthy: Samsung’s first-quarter profit dropped by 60%. This is  the largest drop in the company's quarterly operating profit in four years, driven by reduction in prices of memory chips and slower smartphones sales.

Samsung Electronics Co. reported its worst operating-profit drop in more than four years, buffeted by falling memory-chip prices and slowing smartphone sales.

Operating income fell 60 percent to about 6.2 trillion won ($5.5 billion) in the three months ended March, according to preliminary results released Friday from the Suwon, South Korea-based company. That was the biggest decline since a similar drop in the third quarter of 2014. Analysts surveyed by Bloomberg had expected a 56 percent slump to an average of 6.93 trillion won.

I find it very hard to believe ?! Is it all real ? I have lot of their products including everyone around me and I think it's all fine and plan to buy few things exactly from that brand. I hope things will be better over time. They are in hard competition with Chinese companies who catch it up.

Good point Kall. I do just think that as smartphones get better, people use them longer. It happened in laptops - you can use a $200 one for 4 years now. As that maturity and reliability happen, replacement is extended and that affects sales.

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