Feeds

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

Quarterly forecast misses expectations

Best practices for enterprise data

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. ®

Recommendations for simplifying OS migration

More from The Register

next story
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Speak your brains on SIGNAL-FREE mobile comms
Readers chat to the pair who flog the tech
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?