Samsung’s Profit Forecast Misses Expectations
South Korean tech giant, Samsung has announced expected operating profits for Q4 2015. The company foretold an operating profit of 6.1 trillion Korean won (around $5.08 billion), which is up 15% compared to the 5.3 trillion won figure the company reported in Q4 2014.Analysts had expected the figure to be closer to 6.6tn won, fueling growth concerns. This comes after Samsung products got hit by weak demand in China and currency woes. Operating profits also fell 7.5% from the previous quarter. Sales of the world’s biggest maker of memory chips, smartphones, and other consumer devices also missed forecasts at 53tn won for the period.
These figures, point towards what could be a tough year for not just Samsung, but the tech industry itself.
Samsung is facing strong competition from Apple at the premium end of the market, while cheaper Chinese rivals are eating into the mid to low level range for mobile devices. As such, this next year could well be crucial for Samsung if it wants to protect its supremacy in the market.