Samsung today published their earnings guidance for Q2 2014 and going by the estimated figures, the result looks bleak for the Korean company. According to figures based on K-IFRS, Samsung expects consolidated sales to up to 52 trillion won and operating profit at 7.2 trillion won, which is less when you compare it with the last quarter (Q1 2014) and year-on-year (Q2 2013). Samsung recorded sales of 53.68 trillion won and 57.46 trillion won in Q1 2014 and Q2 2013 respectively and operating profit of 8.49 trillion won (Q1 2014) and 9.53 trillion won (Q2 2013).
Do note, these are not the final reported figures but given the guidance, it will be in the same range.
Samsung also released another statement explaining the reduction in earnings. Samsung attributes rising Korean won as well as slowdown in the overall smartphone market and increased competition as major factors for less than stellar results.
However, for Q3, Samsung “cautiously” expects positive outlook with the release of its new smartphone lineup.
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