Feeds

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

Quarterly forecast misses expectations

Secure remote control for conventional and virtual desktops

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. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
Ancient pager tech SMS: It works, it's fab, but wow, get a load of that incoming SPAM
Networks' main issue: they don't know how it works, says expert
Trans-Pacific: Google spaffs cash on FAST undersea packet-flinging
One of 6 backers for new 60 Tbps cable to hook US to Japan
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.