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Samsung Q2 profit down 25%; blames smartphone growth slowdown

Samsung has forecasted a third consecutive loss in profit, this time for the second quarter in the months between April and June, down 25% for the same period last year due to a slowdown in the smartphone market and a strong Korean currency.

It expects to make an operating profit of 7.2 trillion won ($7.1bn; £4.2bn) for the second quarter, down from 9.5 trillion won a year ago.

Samsung said in a statement that it "witnessed a slowdown in the overall smartphone market growth and saw increased competition in the Chinese and some European markets" during the period.

At the same time, a stronger Korean currency also dampened Samsung's earnings during the period; the Korean won rose more than 11% against the US dollar and nearly 7% against the Euro between July 2013 and the end of June this year.

Samsung relies heavily on exports, after which it repatriates the overseas earnings against a stronger Korean won. Samsung has stated that it "cautiously expects a more positive outlook in the third quarter."

In other bad news for Samsung, the company took a forced $36m USD loss in electronics equipment after their Campinas plant in Brazil was robbed by a gang of up to 20 men last night, in which police described was most likely "an inside job."

Source: BBC | Image: Samsung

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