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Samsung issues low profit guidance after taking TV and mobile hit

Samsung UHD S9 Series Smart TV

Samsung UHD S9 Series Smart TV

Samsung predicted a 60% year-on-year decline in Q3 profits, thanks in part to weak seasonal demand for its consumer electronics business – including TVs.

The firm said it expected a “substantial” quarter-over-quarter decrease for its Q3 earnings, also citing declines in the mobile business “due to intensified smartphone competition,” issuing the warning just weeks after Apple’s new iPhone 6 went on sale.

“Under typically weak seasonality, earnings for the consumer electronics (CE) business declined substantially quarter-on quarter due to [a] reduced average selling price (ASP) of TVs and an earlier-than-expected end to the peak summer sales season of home appliance products, such as air conditioners,” said Samsung.

Overall the firm estimated that consolidated operating profit for the quarter would be KRW4.1 trillion (€3.04 billion), a 59.7% year-on-year decline. Samsung tipped revenue for the quarter to be KRW47 trillion, down 20.5% year-on-year.

Tags: Korea, Samsung