UPDATED 09:02 EST / OCTOBER 07 2010

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.


A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU