According to a new report, "Samsung Group's electronics affiliates are engulfed in a shock ignited by the Galaxy S4. Many forecast that Samsung Electro-Mechanics, Samsung Display, and Samsung SDI are expected to report disappointing fourth-quarter performances, which would be even lower than their lower-than-expected third-quarter performances.
Key factors behind their sluggish financial performances include the sluggish sales of Galaxy S4 which was expected to be sold more than 7 million units a month but its monthly sales fell to 3-4 million units in the fourth quarter."
The future outlook is uncertain since the demand for premium smartphones will likely to stagnate further next year, states the report.
The report further notes that "Samsung Electro-Mechanics, for example, is forecast to post an operating profit of 50 billion won ($47 million US) for the fourth quarter of this year, far lower than 144.9 billion ($137.5 million US) won a year ago and 164.3 billion won ($155 million US) a quarter ago."
Beyond the "Samsung Electro-Mechanics" example, FnGuide provides us with another set of numbers for Samsung overall. Research from FnGuide states that "Samsung may post weaker-than-expected fourth quarter results when it reports. Analysts now see the South Korean smartphone giant posting a profit of around 9 trillion won, down form a prior view of 10.2 trillion won. While negative foreign exchange fluctuations will get most of the blame for the miss, the news may underscore a bigger theme – that Apple is back on top in the smartphone battle." Another report from Korea IT Times added that "as the year's end approaches, the estimates for Samsung Electronics' fourth quarter operating profit have been revised downward to the 9-trillion-won level."
