Galaxy smartphone maker Samsung reported Thursday that its quarterly net profits dropped in comparison to the previous quarter for the first time in more than two years.
In its detailed earnings report for the fourth quarter, Samsung said that its net earnings for the October-December period fell a total of 11 percent from the third quarter to 7.3 trillion won ($6.8 billion). Last year Samsung notched 8.84 trillion won ($8.27 billion) in operating profit, Engadget reports.
The drop marked the first time in nine quarters that the South Korean company experienced a profit decreased compared to the previous quarter.
A $745 million one-off special bonus payment to employees celebrating the 20th anniversary of its "New Management Initiative" had a role in the profit cut, Reuters reports. The strong Korean won, high marketing costs to promote Samsung Galaxy devices, and one-time expenses such as special bonuses to employees were highlighted by the company as reasons for the drop in profits.
Though the results were below market expectations, Samsung predicted the decrease in its operating profit in early January. Sales increased 6 percent compared to a year earlier to 59.3 trillion won, the AP reports.
Treye Green is a reporter for The International Business Times and a recent graduate of the University of North Carolina at Chapel Hill. Green has shot, edited and...