Samsung disappoints investors despite record $8.3 billion profit

Samsung disappoints investors despite record $8.3 billion profit

  It’s not easy living up to expectations when you are consistently
delivering stellar results and competing for the top spot of the market.
We’ve seen it happen with Apple’s declining share price, despite the
iPhone and iPad still selling like crazy. Now Samsung has apparently let
down investors while seeing its highest-ever revenue and profit in a
quarter, estimated at $49.9 billion and $8.3 billion respectively in
their early guidance numbers.
Such profit represents a 47% year on year rise as well as 54% growth compared to last quarter. But Reuters
reports that investors hoped to see profit closer to $8.89 billion,
meaning Samsung’s early figures are 6.4% below expectations. Final
earnings results should land July 26 but they shouldn’t differ too much
from this.
Apparently concerns center on slowing growth and shrinking margins at
the high end of the smartphone market. Analysts talking to Reuters and Bloomberg
also cite disappointing sales of the Galaxy S 4. Although it easily
became the fastest selling Android device ever, the increased expenses
in marketing and distribution channels weren’t justified in investors’
eyes as it still wasn’t able to outpace Apple’s iPhone 5 launch figures.
Samsung sells more smartphones than anyone else when adding up the full range of devices it offers, though.
Of course, smartphones are just one part of the picture. Samsung also
holds the lead in the memory chip market, which is expected to remain
strong, and its component business is also doing well. But Apple’s lessening reliance on the South Korean firm for iPhone and iPad parts should give investors another thing to worry about.
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