Korean technology firm Samsung has released preliminary quarterly results indicating it forecasts record profits in 2017’s fourth quarter. Nevertheless, it does not seem it can live up to analysts’ expectations.
Tempered expectations for 2018
Samsung forecasts a fourth quarter profit of 15.1 trillion won (12 billion euro), which is a record result for the company and nearly two thirds up from last year. It still did not meet analysts’ expectations because they had targeted a 15.9 trillion won (12.5 billion euro) profit. Turnover was also lower than anticipated, at 66 trillion won (51.7 billion euro).
Samsung’s record profit is largely thanks to the increased computer chip prices. However, he strong South Korean won and one-time bonuses meant the company could not live up to expectations.
For 2018, Samsung has issued a tempered forecast: analysts predict computer chip prices to drop and there is some doubt about Samsung’s smartphone division, because of increased Chinese competition. These new competitors have gained ground and will continue to do so – both in Asian and European markets.
