Revenues from telecommunications division brings Samsung Electronics about 60% of total revenue. In the reporting period, this group showed a decline in revenue for the year by 33% (mobile group - 34%). It is therefore natural that the fluctuations in the main load bearing units affected the work of the company as a whole. Partially rescues the situation that Samsung Electronics has its own production of semiconductors and displays. It gives hope for the alignment of the financial situation in the fourth calendar quarter this year. Besides this, the company relies on wearable electronics as smart clock. However, in this case the costs of marketing and launch direction will eat all the profits and still ask for more.
Should this situation be considered the beginning of the end of Samsung Electronics? It's unlikely. The same AMD is in a state of permanent losses for decades and nothing terrible happens. For Samsung's revenue decline in the face of one division : Samsung Electronics - this is such a small thing. Unlike its competitors, the company Samsung Electronics is the main - advanced factories. Perhaps this is the most expensive item of expenditure for it. Each year the company devotes to the capital costs amount close to the volume of annual operating profit.