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Samsung’s Earnings Disappoint Analysts

Samsung Group HQ in Samsung Town, Seoul | Wikipedia

Samsung Group HQ in Samsung Town, Seoul | Wikipedia

Despite reporting a record operating profit for the second quarter of the year, Samsung Electronics’ earnings are still below analysts’ expectations. Due to this, the company’s stock went tumbling down last Friday.

The South Korean tech giant’s shares dropped to almost 4 percent, following their released guidance for its June quarter results. It was revealed that their operating profit grew to 47 percent year over year t0 9.5 trillion won ($8.3 billion). The said quarterly result will be reported later this month.

However, industry watchers have expected Samsung to have an operating profit increase of 10.16 trillion won. This makes the second quarter the latest disappointment for investors, as Samsung seen its shares drop to over 15 percent during the previous month.

It appears that the South Korean conglomerate has become more and more dependent on its smartphone business, which accounts for about 70 percent of their total profit. Apple’s iPhone, on the other hand, accounts for 50 percent of the Cupertino-based company’s revenue.

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