Samsung's net profit slumped 39 percent on the year in the January-March period, the sixth consecutive quarterly decline, fueling further doubts over whether the tech giant will be able to turn around its beleaguered smartphone business.
First quarter net profit fell to 4.626 trillion won ($4.34 billion), from 7.574 trillion won a year earlier, as troubles in its mobile division amid cut-throat competition from both Apple and low-cost Chinese manufactures overshadowed success in its chip division.
"The earnings reflect that their smartphone strategy has reached its limits; it's not working," Tom Kang, research director at Counterpoint Research told CNBC.
Meantime, operating profit for the quarter came in at 6 trillion won, compared with the company's earlier guidance for 5.9 trillion won.
Mobile division profit for the quarter stood at 2.74 trillion won, lower than the chip division's profit of 2.93 trillion won. The mobile division now accounts for 46 percent of the company's overall operating profit, compared with the chip division's 49 percent contribution.
Samsung said its average selling price for smartphones in the quarter fell from levels in the fourth quarter, but the number of shipments rose.
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