Samsung Shares Weakened, Still Leading in U.S. Android Devices
South Korean Shares ended low Thursday, as Samsung Electronics third-quarter operating guidance “triggered profit-taking by investors seeking to lock in their gains from Wednesday’s rise,” says the Wall Street Journal. Samsung landed 2.9% lower at KRW770,000. The expected operating profit was KRW4.8 trillion, on the average of KRW4.6 trillion-KRW5.0 trillion, lagging by .6% from the KRW 5.6 trillion as a Dow Jones Newswire poll pointed out.
“Samsung’s earnings likely peaked in the second quarter,” said Shinyoung Securities analyst Lee Seung-woo. “The company will face headwinds at least for a couple of quarters largely because of a slowdown in the recovery of the global economy, which hurts consumption.”
It’s quite a tumble for Samsung, as the Korean market held a 3-year peak in share prices. “Amid U.S. dollar’s recent relative weakness, foreign investors are buying stocks in emerging Asian countries where they see healthy economic recovery and growth,” said Kim Seong-bong, a market analyst at Samsung Securities.
In a market where consumer electronics are still expected to boom, especially with the upcoming holiday shopping season, the timing of Samsung’s weakened state could be better. The playing field is only becoming more competitive, with Sony landing the partnership for Google TV distribution, and the smartphone and tablet market only beginning to heat up. Samsung has taken several measures to ensure its position as a leader, however. The company is a leading manufacturer of Android devices, thanks to its Galaxy S and Tab phone and tablet. It’s developing portals for mobile apps as well, which is another opportunity of ongoing monetization.
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