Samsung Electronics’ second quarter misses forecast as smartphone worries deepen


Powered by Google’s free Android platform, the Galaxy S , which also may walk in the footsteps of Samsung iPhone Investors fear earlier.Now five years Apple Inc. dominated the industry standard was set in 2012, the South Korean firm ‘s top-ranked propelled smartphone manufacturers

” Now the story is over, the Samsung smartphone is not quite yet . Growth actually slowed largely because of disappointing sales to S4 ,” The war , which owns Samsung shares Dongbu Asset Management , a fund manager at the rendered . ” I said that Samsung still has some exciting stuff up my sleeve . Problem any of these products really wow investors and consumers . ” Even the most bullish forecasts that Samsung has had a track record of beating disappointing Earnings estimates sure what can be sent on Friday its shares down more than 3 percent .

They have dropped 17 percent since early June, hit by a series of brokerage downgrades. The share price reflects concerns about Samsung’s handset margins, with its mobile business generating 70 percent of the tech giant’s total profit.The fall in the share price equates to a drop in market value of 39 trillion won ($34.2 billion), or worth the combined market capitalisation of Sony Corp and LG Electronics Inc.”One of the biggest risks for Samsung Electronics going forward is that 70 percent of total operating profit comes from mobile business. Diversification is key. Samsung needs to engage in active business transition until end-2014,” said Jeff Kim, an analyst at Hyundai Securities.


To be sure, Samsung ₩ 9500000000000 $ (8.3 billion) operating profit forecast, up 47 percent from a year earlier, a record and take calls as sales of its latest Galaxy S 4 in high income in the current and fourth quarters the report is expected to hit stores up and new products. Prices of memory chips, which Samsung has led the industry are also expected to remain strong.

“Samsung’s got diversified businesses. When one business lags, it’s got others outperforming and propping up the overall profit,” Jung at Dongbu said.”The component business is widely expected to pick up the slack in the second half when smartphones slow, but now worries are also mounting that the component business’ recovery could be short-lived.”

Quarterly results on July 26 released the complete guide, Thomson Reuters I / B / E / S by an average of 43 analysts’ estimates in a survey was worse than ₩ 10160000000000 .. Samsung first time in at least three more on marketing than R & D spending in 2012 years , and S4 , a Broadway -style show in New York was launched in March .The company also invested heavily in distribution channels including opening brand shops in 1,400 Best Buy stores in the United States.But the glitz and glamour has failed to arrest a slide in handset sales growth, and shipments are seen rising only 4 percent to 8 percent in the second quarter from the previous quarter.Handset margins are also being squeezed, as consumers in countries like China – the world’s biggest smartphone market – opt for stripped-down cheaper devices.


Such competition between Huawei Technologies Co Ltd and its lower end to make up ground in market.Nokia Oyj ZTE Corp. is getting intense with Chinese manufacturers, handset once king, two back-to-basics 3G this week phone unveiled. They are popular for applications such as Facebook and Twitter are allowed to use, and sell for just $ 68.

“There’s still a big uncertainty about how Samsung will respond to the low-end market,” said Brian Park, an analyst at Tong Yang Securities, referring to its plans to launch a device based on the open-source Tizen operating system.Wearable gadgets will also be crucial to the company’s hopes of riding a new wave of extraordinary profit growth.

Apple is also Samsung’s gear industry ” has filed a trademark for wearable computers.Samsung turn its attention to the iPhone maker as a watch -like device signals to be moving forward with plans in Japan ” iWatch ” theits range in the untied States . “” Byun said Han -Joon , KB investment & Securities analyst . ($ 1 = 1139.2000 Korean Won )


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