Samsung profit up 15 percent, but disappoints

The company expects operating profit grew 15 percent year-on-year in Q4

Samsung Electronics said Friday that its operating profit in the fourth quarter of last year was likely to be 6.1 trillion won (US$5 billion), up by 15 percent from the same quarter a year ago.

The guidance is, however, lower than analysts' estimates, and far lower than the around 80 percent growth in operating profit the company reported in the third quarter, indicating that slowing growth in China and mature smartphone markets may have affected the South Korean maker.

The bulk of volume and growth in the smartphone market will come from low to mid-range handsets, particularly in emerging markets, IDC said in October. Samsung has introduced a number of low-cost phones but it is up against low-cost Chinese players and local players in fast-growing markets like India.

Samsung does not break up the performance of its various divisions or provide net profit information until its release of audited results later this month.

The company said its sales were likely to be 53 trillion won in the quarter, up from 52.7 trillion won in the same quarter last year.

The company said, when announcing its third quarter results, that it expected higher market demand for mobile phones and tablets toward the end of the year, but competition would get stronger.  It forecast that by 2016, the growth rate for the smartphone market was expected to "slow down continuously, compared with previous years."

Besides smartphones, Samsung makes a variety of other electronic devices like TVs and components like memories and displays. It is also a key component supplier to the smartphone industry. At CES this week, the company made a strong pitch for the Internet of Things market, indicating that the company is looking at many more opportunities beyond smartphones. The company's IT and mobile communications division, however, accounted for more than half of sales in the third quarter.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >

Mobile

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?