Samsung Elec falls by 5 percent on weak earnings outlook

Samsung Elec falls by 5 percent on weak earnings outlook

While remaining global leader in sales of mobile phones and smartphones, Samsung remains in a fragile position in the eyes of analysts and investors who fear a decline in profitability of its activities and the effect of the high value won against the dollar.

Giant Samsung continues to encourage concerns about its financial performance despite its overwhelming dominance in the field of mobile telephony and its semiconductor activities manufacturer and OLED displays.

So it must present its earnings forecast for the quarter, the course won by 5% to 1.31 million (about $1240) amid fears with respect to the decline in profitability. The growth in operating profit may be less than 10% and reach 9.9 trillion as it posted a 26% increase in the same period a year ago.

The profit record made during the third quarter was not enough to reassure observers who are still fearing the falling profits of the mobile industry as the sector's growth moves from the top to the entry and mid-range, generating less room.

Samsung mobile industry is expected to grow 14% a year, an operating profit of 6.2 trillion won, but fall by 8% over the previous time period. Investors also lack visibility into future growth of the group.

The rise of the value of the Korean won against the dollar, which increased the value of its products in international markets, is not either the affairs of the electronics giant, especially for its semiconductor activity manufacturer, and that a series of special bonuses to its employees will also affect net earnings for the quarter. The full financial report will be presented in late January.


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