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Samsung's record quarter doesn't impress investors

Samsung's record quarter does nothing to investors, they're not impressed with the $49.9 billion in revenue

| Business, Financial & Legal News | Posted: Jul 6, 2013 7:35 am

Samsung have just had a record quarter, where they're estimated to have pulled in their highest-ever revenue and profits for a quarter - estimated at $49.9 billion and $8.3 billion, respectively.

 

TweakTown image news/3/1/31574_02_samsung_s_record_quarter_doesn_t_impress_investors.jpg

 

This huge profit from Samsung is a 47% year-on-year increase, and represents a 54% growth compared to last year. But, Reuters is reporting that investors were hoping to see profits closer to $8.89 billion, which means Samsung's early estimates are 6.4% below expectations. We should have the full earning results later this month, where everything will be laid out in front of us.

 

Reuters and Bloomberg are blaming the lower than expected profits on the "disappointing sales" of the Galaxy S4, which has sold over 20 million units in two months. But, this is coming at the expense of increased marketing costs and distribution channels weren't justified in investors' eyes as the S4 still couldn't compete with the iPhone 5 launch numbers.

 

This is the problem most companies, including Apple, face the bigger they get. You can't continually pull in higher and higher margins, profits, and sales. There are always brick walls and obstacles, but have Samsung met theirs yet?

NEWS SOURCE
Techspot.com

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