Samsung warns of lower profits, troubled year ahead

Samsung is warning its investors that results for the last quarter of 2015 may be somewhat lower than some analysts were anticipating. On top of that, the company's CEO warned that FY 2016 may also prove to be problematic.

The giant Korean manufacturer warned its employees and investors this weekend that the coming year may be one of uncertainty. CEO Kwon Oh-hyun said that low global growth, financial risks from developing countries and the declining price of semiconductors and LCD screens, which the company makes, are among the top factors for said uncertainty.

The company’s stock quickly took a dive, as it was already on shaky ground due to unfavorable forecasts for the company’s last fiscal quarter results of 2015. Samsung is expected to announce a significant decline in profits compared to Q3.

The company’s troubles also stem from weaker seasonal demand as well as lackluster results in the market with its latest Galaxy S6 and S6 edge smartphones, that fell short compared to internal expectations.

With Apple still taking the lion’s share of profits in the smartphone industry, as well as gaining market share, 2016 may prove to be a pivotal year for Samsung and its smartphone business.

Source: Reuters

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