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The profit of Samsung with 30% decrease for the first quarter

The South Korean technology company Samsung reported a decline in profits from 30% in the first quarter a year earlier. The reasons for this state falls in the prices of memory cards and reduced the price in the manufacture of liquid crystal displays and televisions. The profit for the first three months was 2.78 trillion. won (2.59 billion dollars). Over the same period last year, the positive result was 3.99 trillion KRW. The sales of Samsung, however, increased by 6.8 per cent yoy to 36.99 trillion KRW. The South Korean company is the largest manufacturer of flat screen TVs, memory cards and LCD. Samsung holds second place for the manufacture of mobile phones after the Finnish company Nokia. In 2010, Samsung achieved record sales, the operating profit and net profit. For this year, the estimates are conservative because of increasing price competition in consumer electronics. The sales of mobile phones has dropped by 14 percent to 70 million units in the first quarter. Unit production of phones, however, reported improved profitability due to growing demand for smartphones and devices from a higher class as a whole. During the quarter share of smartphones in the total sales of phones reached 18 percent after the same period of last year was only 4 per cent.
Today, the shares of Samsung lost about 2 percent of the stock exchange in South Korea.