Samsung’s Final Quarter Profits May Fall
Top chipmaker Samsung Electronics met expectations with a 17% rise in third quarter operating profit, but is facing a challenging final quarter.
The $4.4-billion profit ends a record 1st half, and with demand for chips and flat panel screens seen slumping, analysts say Samsung’s 4th quarter profits may fall 25%.
Falling demand for PCs is likely to have the biggest impact on the company’s chip business.
Chip sales accounted for 70% of Samsung’s profits in the most recent quarter.
But chip demand for new mobile devices like tablet PCs could limit the slowdown.
Asia’s most valuable technology firm recently unveiled its own tablet PC, with hopes of selling six-million of the Galaxy Tab next year.
Samsung’s TV business posted a loss amid tough competition and oversupply. Its TV unit is expected to post continued losses in the 4th quarter.
One bright spot in Samsung’s outlook is its smartphone business. After a slow start against competitors like the iPhone and Blackberry, Samsung’s smartphone shipments jumped 11%, and profits rose nearly 20%.
Samsung shares fell over 2% Friday. The stock is down over 4% so far this year, compared to a 13% gain in the wider market.