Samsung sees q-o-q decline in mobile device revenues in Q4, while 2014 competition intensifies

Korean electronics giant Samsung saw a quarterly drop in its mobile device revenues in 4Q13, although it maintained strong year-on-year increases, Samsung said in a results release.

The firm's total mobile device revenues hit 32.2tn won (US$29.6bn) in the quarter, down by 9% compared to Q3 but up 8.7% from the last quarter of 2012.

Demand for smartphones increased in both emerging and developed markets in Q4, but Samsung's smartphone shipments decreased slightly due to inventory adjustments and a base effect due to strong Q3 growth, the company said.

Meanwhile, tablet sales increased significantly quarter on quarter in Q4, Samsung added.

Samsung also saw operating profit drop by 18% q-o-q in its IT and mobile communications division to 5.47tn won, although revenues remained flat compared to 4Q12.

The company's total revenues increased by 5.7% year-on-year to 59.3tn won in Q4, while net profit increased by 3.7% by the same comparison.

SMARTPHONE COMPETITION TO INTENSIFY IN 2014

Samsung expects smartphone competition to intensify in 2014, as conversion from feature phones to smartphones accelerates.

Demand is expected to remain solid in emerging markets, while LTE services will drive expansion in markets such as Europe and China, the company said.

Meanwhile, tablet competition is also expected to intensify with continued rapid growth in the segment, the release added.

Samsung remains the unquestioned global smartphone leader, reaching a market share of 31.4% of the global market in Q3, more than twice that of number two competitor Apple (Nasdaq: AAPL), according to IDC figures.

Meanwhile, the company has grown its market share rapidly in the tablet space, but still trails Apple which is leading the market.

Continued strong global demand for tablets and smartphones will continue this year. Global tablet shipments are set to increase by 18% in 2014, while that figure will reach 12% for smartphones, according to IDC.

It remains to be seen whether Samsung will be able to continue to expand its market share in these areas during 2014 as competition heats up on a global scale.

Combined smartphone and tablet unit shipments to Latin America are expected to increase by 28% in 2014, reaching some 142mn units in the year.