Samsung phones profit rate decline
Due to highly increse in the smartphone competition samsung is on track to report lower operating profit for the first time in more than two years time.
South Korea-based Samsung said Tuesday that it would report operating profit of around $7.8 billion for the final three months of the year — an 18% decline from the previous quarter. Analysts had expected the company to post a profit closer to $9.4 billion.
Fourth-quarter sales were also lower than the previous three months, falling slightly to around $55 billion. The figures are a preliminary forecast, and Samsung will release an official report later this month.
Samsung shares were flat in morning trading in Seoul, but the stock has declined almost 5% so far this year. Over the past three months, shares are down almost 9% as the company faces a stronger Korean won, which makes Samsung products more expensive for overseas buyers.
The company is also facing increased competition from Apple , especially in China. The iPhone maker struck a deal late last year with China Mobile, which boasts 700 million users and is the world’s largest carrier by number of subscribers.