Samsung reports first quarterly decline in two years
Samsung Electronics has released their earnings report for the fourth quarter. Their operating profit is a bit lower than last year. Samsung reported 8.3 trillion won ($7.8 billion U.S.), which is lower than 8.84 trillion won ($8.27 billion U.S.) in operating profit last year. Investors are concerned that Samsung is slowing down in their tablet and smartphone business. Samsung does not want investors to fear the drop because demand for their smartphones and tablets are high. Their tablet sales doubled from last year, but marketing costs and “year-end inventory adjustments” lowered shipments and affected profits. Another reason for the drop is because there was a $745 million one-off special bonus payment to employees that celebrates the 20th anniversary for the “New Management initiative.” The strong Korean won currency also affected profits.