{"id":54130,"date":"2014-10-07T06:47:09","date_gmt":"2014-10-07T06:47:09","guid":{"rendered":"http:\/\/4cd.e16.myftpupload.com\/?p=54130"},"modified":"2014-10-07T06:47:09","modified_gmt":"2014-10-07T06:47:09","slug":"samsung-forecasts-60-fall-in-profit","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/?p=54130","title":{"rendered":"Samsung forecasts 60% fall in profit"},"content":{"rendered":"
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Samsung Electronics has forecast a 60% fall in quarterly operating profit from a year ago, missing estimates, because of slowing Galaxy smartphone sales.<\/p>\n

The world’s biggest mobile phones and TV maker said it expects an operating income of 4.1tn won ($3.8bn; \u00a32.5bn) for the three months to September.<\/p>\n

That is below analysts’ expectations for earnings of 5.2tn won.<\/p>\n

The company’s full financial results will be released later this month.<\/p>\n

Samsung Electronics<\/strong><\/div>\n

Samsung’s mobile division, its biggest business, has been struggling to maintain its dominance against rivals such as Apple and Chinese smartphone-makers Xiaomi and Lenovo.<\/p>\n

Its flagship Galaxy smartphone line has been losing market share to cheaper models that also have large screens and multiple features.<\/p>\n

The South Korean company said quarterly sales amounted to 47tn won, which was below analyst estimates for 50.3tn won.<\/p>\n

“Smartphone shipments increased marginally amid intense competition,” Samsung said in a statement.<\/p>\n

“However, the operating margin declined due to increased marketing expenditure and lowered average selling price.”<\/p>\n

The company also said it is “preparing new smartphone line-ups featuring new materials and innovative designs, as well as a series of new mid-to-low end smartphones”.<\/p>\n

Samsung shares rose about 1.6% in Seoul despite the weak profit outlook.<\/p>\n

Chip plant<\/p>\n

Samsung announced on Monday that it would spend about $15bn on a new semiconductor plant in South Korea, to meet the growing demand for memory chips.<\/p>\n

It is set to be the biggest single investment in a chip factory, and construction will begin in the first half of next year with operations due to start in 2017.<\/p>\n

Samsung is a major chip supplier to other electronics firms, including major rival Apple.<\/p>\n

Samsung is also facing some pressure at its consumer electronics division, which makes televisions, air conditioners and other appliances.<\/p>\n

Sales and overall profit are forecast to have dropped because currency fluctuations made Japanese-made rival products cheaper to buy.<\/p>\n

The Korean won strengthened about 3.5% against the Japanese yen in the third quarter.<\/p>\n<\/div>\n

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Source: BBC<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Samsung Electronics has forecast a 60% fall in quarterly operating profit from a year ago, missing estimates, because of slowing Galaxy smartphone sales. The world’s biggest mobile phones and TV maker said it expects an operating income of 4.1tn won ($3.8bn; \u00a32.5bn) for the three months to September. That is below analysts’ expectations for earnings […]<\/p>\n","protected":false},"author":14,"featured_media":54131,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[],"tags":[18],"class_list":["post-54130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-dr-akwasi-osei"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/54130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54130"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/54130\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/media\/54131"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}