Northern, WI 1/29/2013 (gdpwatch) – Samsung Electronics Co. (KRX:005930), the biggest manufacturer of smartphones in the world, saw its shares decline for a 2nd day on Seoul exchange, following a warning regarding a slowing down of global demand. The company said a stronger won would help to lower its operating profit in current year.
The South Korean giant in terms of market capitalization stated on Jan. 25 that it anticipated a comparatively lower demand for smartphones during this year in view of the market saturation evident in developed countries and stiff competition present in the low-end segment for Chinese vendors. Even Apple Inc. (NASDAQ:AAPL) has also declined 17% during this year on worries regarding smartphone demand.
Doh Hyun Woo, an analyst working with Mirae Asset Securities said, “Strong growth in the smartphone market has come to an end. There are also persistent concerns about Samsung’s (KRX:005930) first-quarter earnings.”
The electronics giant may see its net income decline to a new low of 8 trillion won during the time frame, Doh claimed. He was previously anticipating 8.8 trillion won.
The stronger won is likely to lower its operating profit by $2.8 billion or 3 trillion won during this year, the company said. The value of currency has gone up by around 1.7% as compared to dollar, since 28th Sept. as against 14% fall against the yen, the data shows.
A stronger won reduces the repatriated worth of South Korean exporters’ foreign sales. The company increased its 4th quarter net income by 76% to 7.04 trillion won, beating the analyst’s forecast of the 6.8 trillion-won.
The shares fell 3.2% and closed at 1,372,000 won, which was its new low from 20th Nov.
Tagged KRX:005930
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