Samsung Electronics’ chief financial officer has said he expects second-quarter results to be “not that good,” as rising competition stifles profit growth at the mobile division, The Financial Times has reported. The company’s operating profit has fallen for the past two quarters, as margins have been squeezed by saturation in the high-end smartphone market, while lower-cost Chinese rivals mount an increasing challenge in the budget segment. The downbeat comments by Lee Sang-hoon, made to local media reporters on the way to a meeting and later confirmed by Samsung, stoked concerns that earnings may be worse than market consensus. “There must have been some adverse effects from the stronger won,” said CW Chung, an analyst at Nomura. “And its smartphones and tablets don’t seem to be selling as well as Samsung had hoped.” Samsung plans to give guidance for the second quarter between July 7 and July 9.
Thursday, June 26- 2014 @ 0:03 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.