Samsung Earnings “Not That Good”: CFO
This week, Lee Sang hoon, Samsung’s Chief Financial Officer said he anticipates second quarter earnings are “not that good”, he told South Korean media.
Samsung had previously cited competition from low cost Chinese vendors, in particular, as a growing threat to its mobile business, which accounts for 75% of its earnings.
Bloomberg tips Samsung to post an operating profit of 8.4 trillion won (US$8.2 billion) in the second quarter to June end, according to analyst estimates. If correct, it means operating profit has sunk again from 8.49 trillion won reported in Q1. Sales fell almost 10% last quarter, but profits rose to 7.57 trillion won.
The Koreans have enjoyed huge success with its Galaxy line of smartphones and tablets. Just his week, it announced one of the first smart watches running Android Wear, which links to all Android devices seamlessly, and Galaxy Tab S, hailed a major threat to iPad.
The company shipped 85 million smartphones in Q1, according to figures from IDC and sells one in three mobiles, globally.
However, the smartphone market predicted to slow 40% this year with analysts predicting Chinese vendors including Huawei, ZTE to take a bigger bite of the mobile cherry, globally.
Samsung is due to report earnings as soon as next week.