Samsung announces a $2 billion share buyback
Samsung has reportedly already taken the necessary steps to get itself back on its feet after several consecutive quarters of financial conundrums. After the numerous reports that it will cut down its product lineup for the upcoming year substantially so as to help customers discern its smartphones more easily, the giant will also might undertake a slight restructuring at the top of its headquarters, with the current head of mobile J.K. Shin in jeopardy of losing his executive position.
This is Samsung's second largest buyback, the first one since 2007. Some 1.65 million common and 250,000 preferred shares will be reacquired, with the hope to further steady the price of its shares and, additionally, improve the returns for its shareholders. Up until now in 2014, Samsung has seen its stock price fall down 12% (as a reference, the global market has only experienced a decline of 1.5% so far in 2014).
This is Samsung's first share buyback since 2007
The weak sales of its flagship, the Galaxy S5, are among the main culprits for the unenviable situation over at Sammy's camp - reportedly, 40% less units of the Galaxy S5 have been sold in comparison with the Galaxy S4. That's way we've already heard numerous rumors and speculations that the next flagship smartphone that will proudly bear the Samsung logo at its front, the Samsung Galaxy S6 (also known as "Project Zero"), will be designed from the ground up. This can potentially help Samsung re-establish its position as a global leader and get back in the black.
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