Samsung, the world's largest corporation, is going through hard times. The company pays the penalty for error strategy chosen this year. The profit fell to the level of 2012. The start-up of Galaxy S4 confounded expectations but the company produced Galaxy S5, which is virtually identical to the previous model. While Apple presented absolutely new design of devices which was met with an expected financial success. Furthermore, in China, the largest smartphone market, the local company Xiaomi strengthened its positions. The company has been one of the major Samsung's competitors in the mid-range segment. Mistakes came at a high cost to the South Korean producer. The net profit in the third quarter decreased 49 percent and came in at 4 billion U.S. dollars (4.2 trillion won). The result was slightly higher than analysts expected, the majority of them predicted a similar value. The revenue fell 20 percent to 47.4 trillion won, operating profit came in at 4.1 trillion won, in the red at 60 percent. It is the worst result since 2012. Separately, image-building failures of the company were made, such as the release of portable gadgets. It is worth noting that last year 5 models of smart watches were presented to consumers, but the product got negative feedback and sales were very low. However, this did not stop the management. A new model of watches will be released this autumn. One pleasant fact is that Samsung activity extends far beyond the mobile industry. There are quite strong divisions responsible for the release of TVs, CPU and RAM. "We are cautiously talking that we expect the income growth amid a sharp seasonal increase in demand for TVs and proceeding business development on system design of data storage," - the statement to shareholders said.
