Menu
Samsung profit up 15 percent, but disappoints

Samsung profit up 15 percent, but disappoints

The company expects operating profit grew 15 percent year-on-year in Q4

Samsung Electronics said Friday that its operating profit in the fourth quarter of last year was likely to be 6.1 trillion won (US$5 billion), up by 15 percent from the same quarter a year ago.

The guidance is, however, lower than analysts' estimates, and far lower than the around 80 percent growth in operating profit the company reported in the third quarter, indicating that slowing growth in China and mature smartphone markets may have affected the South Korean maker.

The bulk of volume and growth in the smartphone market will come from low to mid-range handsets, particularly in emerging markets, IDC said in October. Samsung has introduced a number of low-cost phones but it is up against low-cost Chinese players and local players in fast-growing markets like India.

Samsung does not break up the performance of its various divisions or provide net profit information until its release of audited results later this month.

The company said its sales were likely to be 53 trillion won in the quarter, up from 52.7 trillion won in the same quarter last year.

The company said, when announcing its third quarter results, that it expected higher market demand for mobile phones and tablets toward the end of the year, but competition would get stronger.  It forecast that by 2016, the growth rate for the smartphone market was expected to "slow down continuously, compared with previous years."

Besides smartphones, Samsung makes a variety of other electronic devices like TVs and components like memories and displays. It is also a key component supplier to the smartphone industry. At CES this week, the company made a strong pitch for the Internet of Things market, indicating that the company is looking at many more opportunities beyond smartphones. The company's IT and mobile communications division, however, accounted for more than half of sales in the third quarter.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments