Samsung Blames Weak Chip Market For Lower Earnings Forecast - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Hardware & Infrastructure
News
3/28/2008
12:41 PM
Connect Directly
Facebook
Twitter
RSS
E-Mail
50%
50%

Samsung Blames Weak Chip Market For Lower Earnings Forecast

A soft semiconductor market and a weak global economy contribute to gloomier outlook.

Samsung lowered its annual sales forecast Friday, blaming a low dollar, high oil prices, and softness in the semiconductor market.

In January, Samsung projected more than 15% annual sales growth, based on demand for flat-screens, high-end mobile handsets, and possible improvement in the "collapsed" memory chip market.

"We will increase our global sales by over 10% this year from the previous year," said Samsung CEO Yun Jong-yong, in a statement. He did add that profit for the year is expected to be higher than last year as the company focuses on its four key businesses: semiconductors, mobile handsets, LCD panels, and TV sets. Samsung also claims to be the world's largest chipmaker; it is the world's second largest mobile phone maker with about 13% of the market, according to recent Gartner figures. Nokia's the largest at 40%; Motorola is third with about 12%.

Samsung's reduced forecast is just the latest sign that mobile phone makers are feeling the heat of a roiled global economy. Sony Ericsson lowered its quarterly forecast 10 days ago; Mitsubishi said in early March it is withdrawing from the mobile phone market entirely.

In its last fiscal year, Samsung reported 7% sales growth, with revenues of 63.18 trillion Korean won ($63.6 billion) last year with a net profit of 7.43 trillion Korean won ($7.48 billion).

With its diverse holdings, the company noted that its semiconductor business has been hardest hit, and that weakness there may reduce profits from its flat screen and mobile handset businesses. "The price of DRAM chips, which was expected to recover this year, is still in the doldrums, showing no signs of recovery," Samsung said.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Study Proposes 5 Primary Traits of Innovation Leaders
Joao-Pierre S. Ruth, Senior Writer,  11/8/2019
Slideshows
Top-Paying U.S. Cities for Data Scientists and Data Analysts
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/5/2019
Slideshows
10 Strategic Technology Trends for 2020
Jessica Davis, Senior Editor, Enterprise Apps,  11/1/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll