Samsung profits hit by falling mobile sales

Samsung reported results this week. Below is a partial from the article. What might it mean for SYNA? Are SYNA components in the devices that are taking share from Samsung? SYNA is not is Apple products but may be in the lower end phones that are taking share from Samsung.

"Net profit fell to 23.4 trillion won ($21.3bn; £14bn) last year, a 27% fall from 30.5tn won in 2013.

Mobile phone sales for the year fell 21% to 107.41tn won.

Analysts said that competition in the Chinese market was eating into Samsung’s profits.

Samsung’s mobile phone division saw profit in the final three months of 2014 fell to 1.96tn won compared with 5.47tn won a year earlier.

The world’s biggest mobile phone maker has been facing stiff competition from Apple and cheaper Chinese rivals.

China is a key battleground for mobile firms. The country has the world’s largest smartphone market, and Samsung’s sales decline was evident there.

Apple contributed to Samsung’s latest reversal in fortune, launching iPhones with bigger screens that robbed Samsung’s Galaxy phones of a key selling point.

Samsung was already battling competition in low-end phones from upstart manufacturers such as China’s Xiaomi.

Samsung is struggling in countries such as China because “they’re sort of being eaten from the bottom up by regional players” including Huawei and Xiaomi, said Ben Bajaran, an analyst at Silicon Valley research firm Creative Strategies.

“And now with Apple being competitive in larger phones, you’re seeing Samsung losing any edge they had at the high end,” he said."