“Samsung Electronics Co Ltd missed already modest expectations for its quarterly earnings guidance on Friday, deepening worries that its smartphone business may have peaked, as growth in sales of its blockbuster Galaxy phones begins to wane and new rivals emerge to eat away at its market share,” Miyoung Kim reports for Reuters.
“The disappointing earnings estimate by Samsung, which has had a track record of beating even the most bullish forecasts, sent its shares down more than 3 percent on Friday,” Kim reports. “They have dropped 17 percent since early June, hit by a series of brokerage downgrades. The share price reflects concerns about Samsung’s handset margins, with its mobile business generating 70 percent of the tech giant’s total profit.”
Kim reports, “The fall in the share price equates to a drop in market value of 39 trillion won ($34.2 billion), or worth the combined market capitalisation of Sony Corp and LG Electronics Inc.”
Read more in the full article here.
MacDailyNews Take: Maybe the slavish copiers can make it up in volume?
[Thanks to MacDailyNews Reader “Double07” for the heads up.]