Samsung (BC94, Financial), (0059935, Financial) has realved details on its two new smartphone the Galaxy A5 and A3. Which the company is touting as their slimmest smartphones to date and the company is using a metallic case which is a step away from the korean companies traditional use of plastic bodies. The body of the new Galaxy A5 is just 6.7mm thick, and the A3 is just 6.9mm thick and both phones will have a 5-megapixel front facing camera. Also the Galaxy A5 has a 5 ich screen, 2 GB RAM, 1.2 GZ quad core processor and a 15-megapixel back facing camera. While the A3 has 4-5 inch screen, the same processor, 1 GB RAM and a 8-megapixel back facing camera. Both phones will run of Androids KitKat (4.4) operating system, support 4G networks and have a Micro-SD slot to that will enable users to to upgrade the memory of their phones. The company announced their new phones when they released their third earnings which where dispointing to say the least. Clearly the company is lossing grown as its business model is be attacked by low-cost smartphone makers. These new phones are aimed for the midde tier market of China.
Third Quater Earnings
The company's income plunged 49% to its lowest level in nearly three years as the companies phones sales slow down. It net income was 4.2 trillion won or ($4 billion) that compared to $8 trillion won a year earlier. Sells fell 20% to $47 trillion won and operating income plunged 60% to $4.1 trillion won. The company's quarterly earnings drop was the result of a 74% year to year decline in profits its phones. With weaker sales and lower prices has grounded the firms profit margins down to 7% which is the thinnest the firm has since the firm started selling smartphones. The company's semiconducter business has replace mobile phones as the largest driver of profits for samsung for the first time in three years. Semiconducter business accounted for 56% of total operating profits and has profit margins of 23% up from a year ago of 21%.
