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Total value of returned bonuses is pegged at $2.3 million

Over the past six months, Samsung has flooded the market with a wealth of smartphones and tablets. We’ve seen the launch of the Galaxy S5, Galaxy S5 Active, Galaxy S5 Sport, Galaxy S5 LTE-A, Galaxy S5 mini, and Galaxy W. On the tablet front, the company has released the Galaxy Tab 4 and Galaxy Tab S series.
Despite a wealth of new smartphone and tablet products blanketing a wide range of price points, Samsung’s profit guidance for the April-June quarter is coming in well below analysts’ estimates. Samsung has cited a number of reasons for its profit decline including a strong Won, a broad slowdown in the global electronics sector, and more specifically, tablet sales that have “declined more than expected.”

Galaxy S5 LTE-A
At least 200 managers from the South Korean company are taking the profit downturn to heart, and have voluntarily returned a quarter of their first half bonuses. According to South Korean media outlets, the value of the returned bonuses is around $2.92 million.
$2.92 million is a relative drop in the bucket compared to the $7.35B net profit that Samsung made during the first quarter. However, Reuters reports that the gesture is largely symbolic to show that the managers take responsibility for the profit decline and will work even harder to improve the company’s performance in the future.
Samsung's mobile division still has time to shine this year, as the next big release on the schedule is the Galaxy Note 4. The next generation “phablet” is set to feature a QHD display, with some variants being powered by either the new Exynos ModAP or Exynos 5433 processors.

Source: Reuters

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Oh Samsung
By Acupuncture on 7/19/2014 10:18:37 AM , Rating: -1
Instead of returning a portion of their bonus, they should take a 50% pay-cut. Samsung's phone division is circling the toilet bowl, and only now they are realizing you can only release cheap plastic crappy phones for so long before profits take a hit.

RE: Oh Samsung
By ritualm on 7/19/2014 1:35:28 PM , Rating: 2
If you have even a clue how managers and executives in these big corporations are paid, you'll realize that a 50% pay cut doesn't work in practice. Ever heard of stock options?

Oh right, you haven't.

RE: Oh Samsung
By atechfan on 7/19/2014 8:06:46 PM , Rating: 3
Lucky for Samsung, phones are just one of many things they make. Samsung could survive the total collapse of the entire phone market. Could Apple?

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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