Seoul: Tech giant Samsung Electronics Co Ltd on Thursday warned of possible weaker profits this yr due tosofter sales of gadgets inclusive of smartphones, a trend this is additionally hurting rival Apple Inc andprincipal chipmakers.
The South Korean firm‘s caution came an afternoon after Apple shares fell greater than 6.five in keeping with cent, the biggest percent drop in two years, because the iPhone maker forecast its first quarterly salesdrop in thirteen years.
Slowing economic boom in China and weaker rising market currencies are undercutting income of electronics starting from televisions to personal computer systems, spelling problem for no longersimplest for Samsung and Apple but for his or her suppliers and the broader enterprise.
“broadly weaker IT demand will make it difficult to hold 2016 profits at the level of the preceding 12 months‘s,” Samsung stated in a assertion accompanying its fourth-sector outcomes, adding that “challenging commercial enterprise situations” might remain for the current area and remaining at some stage in the first half of this 12 months.
Samsung stated its October-December working earnings become 6.1 trillion received ($five.05 billion), matching its earlier steering. sales rose 1.1 in keeping with cent to 53.three trillion received, slightlyhigher than the fifty three trillion received it guided for.
The maker of Galaxy smartphones and tablets suggested a complete–yr operating earnings for 2015 of 26.four trillion received, in comparison with 25 trillion won the preceding yr.
Samsung stocks were down 2.four in line with cent as of 0322 GMT, underperforming a 0.2 in step withcent upward push for the wider market.
some investors and analysts believe Samsung will see its earnings fall for the second time in 3 years in 2016, as slack demand for devices undercuts costs of reminiscence chips and presentations that helped to offset declining cell earnings ultimate 12 months.
The semiconductor department became the top earner for the sixth directly zone inside the October-December duration, lifting its operating income to two.eighty trillion received from 2.70 trillion gained a12 months earlier.
cell division earnings slipped 7.3 consistent with cent from the 1/3 zone to 2.23 trillion gained, its weakest result in 4 quarters. Samsung said first-region mobile income would improve slightly, boostedwith the aid of the launch of new smartphones, despite the fact that standard telephone shipments werepredicted to say no slightly.
one by one, Samsung stated it planned to shop for back and cancel 2.99 trillion gained well worth ofcommonplace and preferred shares, marking the second one spherical of share purchases as a part of a11.3 trillion buyback plan announced overdue last yr.
The firm might additionally pay a year–end dividend of 20,000 received according to share.
© Thomson Reuters 2016
story first posted on: January 28, 2016 10:01 (IST)
Tags: Samsung Electronics, Samsung income, Samsung shares
