The technology giant, Samsung Electronics, estimated its operating profit for the last quarter of 2015 at 6.1 trillion Korean won ($5.1 billion) up from 5.3 trillion won in the preceding year, however this result missed the predictions of analysts, who expected an amount of 6.6 trillion won.
Following a near two-year slump in profits for the South Korean company, as a result of the fast-changing and competitive smartphone market, the technology giant began to show signs of growth in Q3, cutting down on its smartphone production, and seeing profit from chips, semiconductors and displays businesses.
Although official detailed earnings will not be disclosed until late January, analysts and investors are concerned that Samsung may be headed for another tough year, with some believing that it may post its second profit drop in three years. Shares in the company were up 1.8% as of 0124 GMT January 8, following a regulatory filing of its October-December operating profit, however overall stock has dropped about 7% in the first trading week of 2016.
The slowdown in economic growth in China, as well as weaker emerging market currencies have resulted in poor sales of consumer electronics and gadget components. This, combined with a more crowded marketplace thanks to the emergence of competition from China’s Xiaomi Corp and Huawei Technologies, which reported a jump in 2015 smartphone shipments, means that it is not just Samsung that has been hit by the changing market: Apple today saw its shares dip under $100 for the first time in nearly five months, following slowing shipments for the iPhone 6S and 6S Plus.
F. A. E. M.