360° Coverage : Mixed views on Samsung after stellar 2013

10 Updates

Mixed views on Samsung after stellar 2013

Jan 24 2014, 9:26am CST | by

As Samsung bids goodbye to stellar 2013, mixed views on its future SEOUL, South Korea (AP) — For Samsung Electronics and its 270,000 employees across the globe, 2013 was the best year...

Filed under: news

 
 
 

26 weeks ago

Mixed views on Samsung after stellar 2013

Jan 24 2014, 9:26am CST | by

As Samsung bids goodbye to stellar 2013, mixed views on its future

SEOUL, South Korea (AP) — For Samsung Electronics and its 270,000 employees across the globe, 2013 was the best year.

One in every three smartphones sold carried the Samsung brand, with the company shipping more than 300 million of the devices. South Korea's best known company on the world stage rounded off the year with record annual revenue and profit. Employees celebrated bonuses totaling more than $740 million.

Already selling more smartphones than any other company, Samsung is set to ship even more this year. Its smartphone sales will jump over 20 percent to nearly 400 million units, according to Counterpoint Technology Market Research.

But that probably won't translate into another year of record earnings, a scenario anticipated by investors with Samsung's share price down 17 percent since the start of 2013.

For the first time in more than two years, Samsung's quarterly net profit declined from the previous quarter, its latest result showed Friday. The maker of Galaxy smartphones said its net profit for the October-December period fell 11 percent from the third quarter to 7.3 trillion won ($6.8 billion).

The mobile business, which generally contributes about 70 percent of Samsung's earnings, posted its smallest profit in a year after sales decreased slightly from the previous three months. TVs, long a mainstay product for Samsung, also disappointed.

Samsung hinted that the earnings decline may not be temporary.

"It will be challenging for us to improve our earnings in the first quarter," Robert Yi, head of investor relations, said on a conference call.

Shareholders have constantly fretted that Samsung's cash cow, smartphones, will become less profitable since sales have reached saturation in developed nations and premium phones don't sell as well in developing countries.

Analysts forecast that Samsung's mobile division will suffer a slight decline in profit in 2014, adding to investor jitters that the company has become too reliant on smartphones. The mobile division's earnings in one quarter now exceed what it would previously make in one year.

Samsung's smartphone sales will not grow much in Western Europe or North America and most of its sales growth will come from Africa, Eastern Europe and India where average prices of smartphones are lower, said Thomas Kang, a director at Counterpoint.

One hope for shareholders is that Samsung's chip business, which supplies companies such as rival Apple Inc., may pick up some of the slack.

At its earnings conference call, a Samsung executive said the company expects its smartphone shipments to increase by 4 to 6 percent during the first three months of 2014 while tablet sales will grow less than 5 percent from the previous quarter.

Analysts said Samsung will likely unveil a new iteration of the Galaxy smartphone next month in Barcelona. The company unveiled new tablet computers at the Consumer Electronics Show in Las Vegas, hoping to narrow its tablet market share gap with Apple.

But Nokia's fall from world's top mobile phone maker to an also-ran is a reminder that no tech company can stay on top forever.

A key source of concern for Samsung is China.

Chinese companies that sell TVs and mobile phones are quickly catching up with cheaper products and improved quality.

Chinese firms such as Lenovo, Skyworth and Huawei may rival South Korean companies more quickly than expected, said Son Jae-kwon, author of "Disruptors," a book on Silicon Valley tech firms.

"People did not expect innovation to come from China, but now it's different," Son said. He compared Chinese smartphone and TV makers that innovate with quick delivery of cheap and solid products to fast fashion firms such as Zara and H&M.

Competition in the Chinese smartphone market will become "somewhat more intense," said a senior Samsung executive, Kim Hyunjoon, as Apple has begun selling iPhones through China Mobile Ltd. which has 750 million subscribers.

But Kim said Samsung sees a business opportunity in China where it leads in smartphones.

"With the spread of LTE wireless service, there will be more demand for high-end" devices, he said.

Chinese TV makers, while they lag in overall TV sales to Samsung, are manufacturing more ultra-HD TVs at cheaper costs. Known as "4K," those TVs are in huge demand among the Chinese.

In the last few years, Samsung invested heavily in OLED TVs, believing they would be a hit. But OLEDs remain unaffordable while ultra-HD TV sales are forecast to surge. This misstep has created opportunities for companies such as Sony Corp., which is getting an additional boost from a weak yen.

Samsung plans to boost its ultra-HD TV lineup this year but market forecasts are not so favorable for the Korean firm.

Samsung is also seeking a breakthrough in its appliance business with its "smart home" vision, a household where mobile devices, refrigerators, TVs and air conditioners talk to each other.

In his new year's speech, Samsung chairman Lee Kun-hee urged employees to "change once again" and to discard business strategies from five or 10 years ago.

In its search for a new cash cow that could replace Galaxy devices, Samsung has been investing in medical devices, solar batteries, health care and other new businesses. But they have not yet generated meaningful results.

"Samsung wants to be a conglomerate in the tech industry," said Marcello Ahn, a fund manager at Quad Investment Management. "It is trying to do it all."

___

Follow Youkyung Lee on Twitter: www.twitter.com/YKLeeAP

Source: AP Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in th ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over R ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 201 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) t ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

Ebola outbreak: $100 mn response plan in West Africa
Geneva, Aug 1 (IANS) The director-general of the World Health Organisation (WHO) and presidents of West African countries hit by the Ebola virus outbreak will Friday meet in Guinea to launch a new $100 million response plan.
 
 
OPEC daily basket price closes lower
Vienna, July 31 (IANS) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) stood at $105.21 a barrel Wednesday, against $105.44 Tuesday, according to the OPEC Secretariat.
 
 
Ebola outbreak not a global threat: Report
London, July 31 (IANS) The deadly Ebola virus does not pose a global threat, a latest report has claimed, adding that as long as the virus continues to infect people in Liberia, Guinea and Sierra Leone, there is small risk of more long-distance export of the disease.
 
 
Getting chatty with meow chat
New York, July 31 (IANS) A new chat app is on the prowl, stalking users on social networks like a cat.
 
 
 

Latest from the Network

Gowda lands discus gold, wrestlers Yogeshwar, Babita triumph (India Roundup)
Glasgow, Aug 1 (IANS) Discus thrower Vikas Gowda broke a 56-year jinx, to toast with gold alongside wrestlers Yogeshwar Dutt and Babita Kumari as India snaked up to the fifth spot in the medal race at the Commonwealth...
Read more on Sport Balla
 
Sharath Kamal-Amalraj in semi-finals of Commonwealth Games
Glasgow, Aug 1 (IANS) India's men's doubles pair of Achanta Sharath Kamal and Anthony Amalraj made it to the semi-finals beating England's Danny Reed and Sam Walker in the table tennis quarterfinal in the 2014...
Read more on Sport Balla
 
Commonwealth Games medals tally
Glasgow, Aug 1 (IANS) England are leading medals table with 44 gold, 40 silver and 39 bronze in the 20th Commonwealth Games. India are now fifth with a tally of 47 medals, including 13 gold, 20 silver and 14 bronze....
Read more on Sport Balla
 
Marsh, Hooper not moving in together
London, Aug 1 (IANS) Actress Kym Marsh and her boyfriend Dan Hooper are not planning to move in together, says the actress' spokesman. "Kym and Dan have no plans to move in together," eonline.com quoted the spokesman...
Read more on Celebrity Balla
 
Indian medal winners at the 2014 Commonwealth Games
Glasgow, Aug 1 (IANS) The following is the list of Indian medal winners at the 2014 Commonwealth Games here: Gold: Sanjita Khumukchan: women's 48 kg weightlifting Sukhen Dey: men's 56 kg weightlifting Abhinav Bindra:...
Read more on Sport Balla
 
Zoe Saldana is a 'bad influence' on sisters
Zoe Saldana claims she is a ''bad influence'' on her sisters, Mariel and Cisley. The 36-year-old actress, who is reportedly expecting twins with husband Marco Perego, admits she has ''almost 10'' hidden tattoos on her...
Read more on Celebrity Balla
 
Kylie Jenner gets new Range Rover for birthday
Kylie Jenner has got a new Range Rover ahead of her birthday. The 16-year-old reality TV star - who will turn 17 on August 10 - shared a photograph of the expensive black vehicle, believed to have been a gift from her...
Read more on Celebrity Balla
 
Ne-Yo sues accountant for $8 million
Ne-Yo is suing his former accountant for $8 million. The 'Closer' hitmaker, real name Shaffer Smith, has filed a new lawsuit against his one-time ''manager, confidant, trusted adviser and friend'' Kevin Foster in...
Read more on Celebrity Balla
 
Brad Pitt and Angelina Jolie exchanged love letters
Brad Pitt and Angelina Jolie exchanged romantic love letters when they were forced to be apart last year. The 39-year-old actress, who has six children, Maddox, 13, Pax, 10, Zahara, nine, Shiloh, eight, and five-year-...
Read more on Celebrity Balla
 
Perfect day for Indian shuttlers at CWG
Glasgow, Aug 1 (IANS) Indian shuttlers had a perfect day at the Commonwealth Games as all of them won their respective Round of 16 matches to proceed to the quarter-finals at the Emirates Arena here Thursday. To start...
Read more on Sport Balla