Samsung Electronics seems to have miscalculated its expectations for the second quarter. The company's CFO Lee Sang Hoon announced that the financial results for the second quarter of 2014 will not be as good as originally expected. Analysts expect Samsung to post an operating profit of $8,2 billion this quarter, compared with $10 billion last year.
The reason for the lower profit compared to last year is said to be weaker smartphone sales during the second quarter, with the company expected to sell 78 million phones during the mentioned period, compared to 87,5 million smartphones a year earlier. This is partly due to strong phone sales iPhone in the segment of high-end devices and sales of low-end devices in China, where local manufacturers are starting to gain popularity due to the very low price of phones. However, according to speculation, Samsung should already have a back door ready in case the situation continues to deteriorate. The solution should be a reduced concentration on the production of smartphones and tablets and a focus on the production of memories and luxury televisions. However, we will find out what the real numbers are next week at the earliest.
*Source: Yonhap News
