Samsung Blames Weak Chip Market For Lower Earnings Forecast - InformationWeek
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.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
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.
Flash Poll