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Monday, July 07, 2014
Samsung May Underperform in Q2

Samsung Electronics' operating profits may decrease to the 7 trillion won level in the second quarter -- well below the estimated projection -- according to analysts.

Korea Investment & Securities Co. estimated that Samsung's operating profits will reach the 7.914 trillion won (US$7.833 billion). Samsung Securities also sees a 7.929 trillion won profit for the same period.

The Korean tech giant will announce its Q2 estimate on July 8.

Samsung's performance is mainly attributable to the slowing growth of the smartphone market.

Google has recently been accelerating the launch of a new offensive to dominate the market with a series of M&A deals and the expansion of new businesses. The search giant is involved in the smart home business by acquiring Nest Labs, and the search engine giant is expanding its businesses to wearable computers and driverless cars based on its Android operating system (OS).

On the other hand, Samsung's own Tizen OS still has a long way to go and it doesn't seem to be enough to boost Samsung's new business efforts.

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