Samsung forecasts 37% drop in profits

Samsung Electronics, the world’s largest TV and mobile manufacturer, has forecast a 37.4 per cent fall in quarterly operating profit from a year earlier.

In its pre-earnings guidance, the firm forecast an operating profit of 5.2 trillion Korean won (€4bn) for the three months to December. Analysts had expected an operating profit guidance of about 5 trillion won.

The firm’s final fourth-quarter earnings are expected later this month.

Samsung has been struggling of late against cheaper electronics manufactures, especially in China, which is the world’s largest smartphone market. In particular, its flagship Galaxy smartphone line has been losing market share to cheaper models.

The firm said its quarterly sales would probably come to approximately 52 trillion won, up from 47 trillion won in the earlier quarter and in line with most expectations.

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