Worries about the next earnings report has Samsung investors dumping shares

Worries about the next earnings report has Samsung investors dumping shares
With Samsung's Q4 earnings expected to take a hit from lower margins in its display business, currency transactions and other factors, stockholders of the Korean OEM starting dumping shares of the company in the first trading day of 2014. Shares of Samsung are down 2% in global markets on Thursday morning. Lee Seung-woo, tech analyst at IBK Investment & Securities, said that the company is having difficulties keeping its profit margins high with its OLED display business.

Samsung is expected to release its fourth quarter earnings next Tuesday and Seung-woo expects the company to report profits of 9.5 trillion Korean won ($9.02 billion USD). That is below consensus estimates calling for profits of 10.2 trillion Korean Won ($9.7 billion USD). Besides problems with OLED displays, part of the shortfall is due to the Won-Dollar exchange rate.


The company is getting ready for CES 2014 in Las Vegas and will be making an announcement about its Exynos line of chips. Some expect the company to introduce two 64-bit chips, one using ARM's 64-bit core while the other will feature Samsung's own 64-bit core and will be 1.43 times faster the Qualcomm Snapdragon 800. Samsung has also announced a new low powered DDR4 RAM chip that could lead to 4GB of RAM on the Samsung Galaxy S5.
source: Reuters

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18 Comments

1. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Maybe stockholders will change their minds if the gs5 turns out to be a success...or not

2. belovedson

Posts: 1060; Member since: Nov 30, 2010

why samsung does not make chips for other manufacturers doesn't seem to make any sense.

3. tech2

Posts: 3487; Member since: Oct 26, 2012

They do make chips for Apple. Or were you referring to Exynos ? If yes, then the reason being they can barely make enough for themselves.

14. belovedson

Posts: 1060; Member since: Nov 30, 2010

so let me get this straight they still can't produce enough for themselves. yet they can produce chips for apple..

15. tech2

Posts: 3487; Member since: Oct 26, 2012

No, it only means Exynos chips are difficult to produce due to bottleneck/parts/process etc. than other SOCs

18. belovedson

Posts: 1060; Member since: Nov 30, 2010

that's somehow hard to perceive and you may be right. just saying, it seems samsung produces most of their stuff in china anyways. there seems to be no point of beating a dead horse but it seems samsung doesnt because it doesnt want to. im sure pricing makes the biggest impact on why. at least to this point

4. troy007

Posts: 2; Member since: Jan 02, 2014

So much for Fandroids claim of Samsung Android Rules the World, LOL. Didn't help their "cause" on USA so called, "Black Friday". In fact it was reported here @ Phone Arena that most e-purchased came from an Android Smartphones Samsung trading/buying up for iPhone 4S, 5, 5c, & 5s. Samsung don't innovate, it's called = CopyCat! Would have been better if they paid the Royalty Fee to Apple from the beginning for Copying the iPhone. :)

5. Dastrix unregistered

+1 Well said!

6. alterecho

Posts: 1106; Member since: Feb 23, 2012

Samsung's R&D is Apple and other companies. They then use the money saved in R&D to market their wares.

7. rd_nest

Posts: 1656; Member since: Jun 06, 2010

It's so pathetic, never thought people would be so uneducated. People don't even bother to read the content of the news. "about 9.5 trillion Korean won, lower than the market consensus around 10.2 trillion.." [less by 6% than market expectation] [biggest reason would be the won-dollar exchange rate..] And yet, people managed to bring Apple/iPhone/innovation/copycat/fandroid in their dialogues. I see you even got 4 'likes' for that comment. No wonder, the world is full of idiots now. You're not an exception, you're just another idiot out of billions of more idiots we have. I blame the parents.

8. SleepingOz unregistered

Haters are way too busy hating to use their brain(assuming they've got one) properly.

16. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

LOL! I use to it. People are basically bias and fearful that the device in their hand get devalued. For me i am aware and i accept whatever products Apple and Samsung chooses to markets. Like it or not they are both cash rich giants and no amount ofhate would change it.

13. skyline88

Posts: 697; Member since: Jul 15, 2013

butthurt American Fruit fanboy.

9. JMartin22

Posts: 2324; Member since: Apr 30, 2013

Another negative and disparaging Samsung/Android piece, courtesy of Alan F.

11. twens

Posts: 1155; Member since: Feb 25, 2012

Why bother read what the haters think. Samsung will always remain the best hardware manufacturer the industry will see. Soon we hope their software also matches their hardware and haters will sink into the ocean like cry babies.

12. xoxoGeorges

Posts: 209; Member since: Jul 11, 2013

IPS and IGZO are catching up.

17. jpd514

Posts: 57; Member since: Nov 08, 2013

The won-dollar exchange rate should be the reason. For now Samsung is the best hardware manufacturer in the industry. It has been recognized by Apple when they found only Samsung being able to manufacture their a7 chip. Apple is a designer, marketing ideas borrowed from the industry.

* Some comments have been hidden, because they don't meet the discussions rules.

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