Samsung forecasts operating profit drop in fourth quarter

The company's revenue is expected to be marginally higher than a year ago

Samsung Electronics has given guidance that its operating profit in the fourth quarter of 2013 is likely to be down from the same quarter a year ago, although sales may have grown marginally.

The company issued the guidance ahead of full results later this month.

Samsung said Tuesday that it expected operating profit in the fourth quarter to be 8.3 trillion Korean won (US$7.8 billion), down from 8.84 trillion won in the same quarter last year.

Revenue is expected to go up to 59 trillion won from 56.06 trillion won a year earlier, the company said.

The South Korean company shipped 117 million mobile phones in the third quarter for a leading market share of 25.7 percent to Nokia's 13.8 percent share and Apple's 6.7 percent, research firm Gartner reported in November. But there have been concerns that increased competition has put pressure on the company's margins.

Competition from Apple is building up, for example, in China where Apple has signed up the largest mobile carrier, China Mobile, to offer the iPhone, and in Japan where NTT DoCoMo, the largest mobile service provider in the country, also started offering the Apple iPhone in September. Samsung also faces competition from low-cost local players in large mobile phone markets like China and India.

Samsung continues to roll out new products, including a smartwatch and new tablets to stay ahead of competition from Apple and other companies.

The company said revenue for the fourth quarter would be in the range of 58 to 60 trillion won, while operating profit would be in the 8.1 to 8.5 trillion won range.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesconsumer electronicssmartphonesSamsung Electronicshardware systemsMobile OSestabletsfinancial resultsmobileAndroid tablets

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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?