Samsung warns of tough 2016 amid Q4 outlook concerns | HT Tech

Samsung warns of tough 2016 amid Q4 outlook concerns

South Korean tech giant Samsung Electronics said it expects a difficult business environment in 2016 due to weak global economic conditions and heightened competition in key businesses including memory chips and smartphones.

By:REUTERS
| Updated on: Jan 04 2016, 12:28 IST
image caption
People are silhouetted as they pose with mobile devices in front of a screen projected with a Samsung logo, in this picture illustration taken in Zenica. (Reuters)

South Korean tech giant Samsung Electronics said it expects a difficult business environment in 2016 due to weak global economic conditions and heightened competition in key businesses including memory chips and smartphones.

In a statement on Monday, Samsung said Chief Executive Kwon Oh-hyun told employees in a New Year's address that low global growth will persist this year, with greater uncertainty stemming from issues such as financial risks for emerging countries.

You may be interested in

MobilesTablets Laptops
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

The comments, which didn't disclose specific forecasts, come amid growing concerns that October-December results for the world's biggest maker of smartphones and chips may be weaker than previously expected. By 0302 GMT Samsung shares were down 3.4%, after earlier dropping 3.5% to a three-month low, while the broader Seoul market was off 1.5%.

Also read
Looking for a smartphone? To check mobile finder click here.

"Negative impact from weak demand and falling sales prices for semiconductor and liquid crystal display industries was likely bigger than initially anticipated," brokerage Korea Investment said in a report issued separately on Monday.

Korea Investment lowered its estimate for Samsung's fourth-quarter operating profit to 6.4 trillion won ($5.41 billion) from 6.8 trillion won previously. The mean estimate of 36 analysts' forecasts compiled from a survey by Thomson Reuters I/B/E/S is for operating profit of 6.8 trillion won, 8.1% lower than the 7.4 trillion won booked in the third quarter.

Samsung CEO Kwon also warned of greater competition in the firm's main businesses, Samsung said in its statement, without offering detailed financial forecasts.

The firm is expected to issue official earnings guidance for the October-December period on Friday. It already said in late October that operating profit for the quarter will be lower than July-September earnings, citing seasonally weaker demand for its component businesses.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 04 Jan, 12:11 IST
NEXT ARTICLE BEGINS