Samsung has issued a profits warning as the company faces a decline in the average retail price of the smartphones it sells. This is the second consecutive quarter that the company is expected to post a decline in profits.
However, those profits are still substantial.
The company expects to report an operating profit of USD 7.9 billion for the first three months of this year, down by 4 percent on a year ago.
The company's performance has ridden on the success of its Galaxy range of smartphones in the void left by the decline of Motorola and Nokia, but it faces increased competition from Asian vendors, especially at the lower priced end of the market.
A resurgent Nokia and Motorola under their new owners also worries investors.
Earlier this year, Samsung had warned that it expects competition in the sector to "intensify" further.
The company is expected to look to cost cutting in the future in order to preserve margins, something it has been able to avoid in recent years.
No comments:
Post a Comment