Feeds

Investors: Oh Samsung. You need to smash those records HARDER

Quarterly forecast misses expectations

Using blade systems to cut costs and sharpen efficiencies

Samsung's estimates for its second quarter earnings missed forecasts, worrying investors despite the fact that it will be another record-breaking quarter at the firm.

The Korean chaebol said that it expected operating profit of between 9.3tn South Korean won (£5.4bn) and 9.7tn won (£5.6bn), up eight per cent on the previous quarter and nearly half as much again as the previous year.

But the high earnings still weren't as lofty as analysts surveyed by Bloomberg had wanted to see. The number-crunchers had hoped to see the Korean tech overlords predicting operating profits of 10tn won (£5.8bn)

Samsung has seen its shares drop 15 per cent since early last month as analysts and brokerages worry about how many new Galaxy S4 mobes the company is selling. Smartphones make up 70 per cent of the giant firm's profits and these concerns have knocked a whopping $29bn off the firm's market value.

As well as worrying about Sammy's top-of-the-range phones, market watchers are also concerned that low-cost mobes from Chinese rivals like Huawei are eating into the firm's bottom line. Unlike its main rival Apple, Samsung has a range of devices, including budget models.

Apple has also seen its stocks fall, losing 40 per cent since their peak last September. Both firms' spectacular growth has ended up working against them as investors became accustomed to them smashing growth records, and became cautious when growth slowed from the incredible to the merely awesome.

Although Samsung relies on smartphones heavily, analysts are expecting the firm to see a small jump in its chip business later this year after producers held back on supply to try to combat falling memory prices. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.