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Samsung’s mobile arm suffers a major 30 per cent drop in profit

Samsung has announced its latest financial figures for Q2 2014, and the news certainly isn't good on the mobile front.

When it came to overall sales, Samsung hit 52.35 trillion won (£30 billion), which was down 2 per cent (according to ZDNet).

Operating profit slid 15 per cent to 7.19 trillion won (£4.1 billion), and this marks the third consecutive quarter in which it has dropped – not a healthy picture.

However, the biggest slippage came from Samsung's Mobile & IT division, which witnessed a 31 per cent drop in profit compared to the previous quarter, taking only 4.42 trillion (£2.5 billion) won compared to 6.43 trillion won (£3.7 billion) in the first quarter.

These figures weren't unexpected as Samsung had warned this would be coming in a forecast, and also there's been a lot written about the slump in high-end handsets since the turn of 2014. Indeed, the new flagship Galaxy S5 may have received rave reviews, but consumers don't seem to be as enamoured as the critics. As we reported recently, the older iPhone 5S and 5C models are both outselling the S5 in the UK and have been for a while – and that's before the launch of the new iPhone in just over a month.

Samsung has also been hit in the Asian market with an increasing amount of competitors focusing on mid-range and lower-end handsets, making snagging sales more difficult.

Samsung has had to up its marketing spend to promote its phones – and has even started with pre-emptive strikes on Apple smartphones – and that's part of the reason profit has shrunk, with movements in the won currency not helping the firm's cause, either.

In total, Samsung apparently shifted 95 million handsets, the vast majority of those being smartphones (closing on 80 per cent).