News Column

Samsung predicting profit fall by quarter

July 9, 2014

SAMSUNG Electronics has issued unexpectedly weak quarterly earnings guidance, putting it on track for its worst results in two whole years.

Although the South Korean company said it saw better business conditions in the third quarter, it faces slowing market growth, intensifying price competition at the lower end and the looming threat of Apple's next iPhone.

The maker of the popular Galaxy range of phones and tablets said operating profit between April and June is likely to be 24.5 per cent below a year earlier at around pound(s)4.1 billion.

That is the sharpest percentage drop since the first quarter of 2011 and the weakest level yet seen since the second quarter of 2012.

The figure, which marks the third straight quarter of annual profit decline, was far below market expectations as sales fell for the first time since the company adopted new accounting standards in 2009.

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Source: Herald, The (Scotland)

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