Samsung Earnings to Decline More Than Expected in 2013

Samsung Galaxy S4 Promo EventThe world’s leading smartphone manufacturer, Samsung, has forecast that its earnings for the last quarter of 2013 will be lower than the previous three quarter of the year and also lower than the earnings in the last quarter in the previous year, which are indicative of the competition that the company is feeling in the industry.

The analysts were expecting a drop in earnings but the forecast is below what that analysts had estimated. Samsung has predicted an operating income of 8.3 trillion won ($7.8 billion) for the 4th quarter which is down from 10.2 trillion won of the third quarter this year. The company had a fourth quarter operating income of 8.84 trillion won in the fourth quarter in 2012. The total revenue for the quarter is expected to be around 59 trillion won, which is almost the same as in the third quarter.

Though Samsung has a controlling one-third share of the global smartphone market, but it has recently been receiving tough competition from rival Apple which has introduced a cheaper version of its iPhone and also struck deals with China Mobile and NTT DoCoMo of Japan. Samsung is also under pressure from cheap Chinese smartphone manufacturers who also have big dreams of giving competition to Samsung in other foreign markets.

Source: NY Times

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