WSJ: Samsung starts new year with $9 billion market value drop

[snowComet]

Wall Street Journal reported, Samsung's stock dropped 4.6% in the first day of trade in 2014,closing down at 1.309 million won (or $1,240), which shaved 9.3 trillion won (or $8.8 billion) in market capitalization, and Samsung's market value dropped 9.9% in 2013. Besides, analyst worried that Samsung's growth may not be as much as they have last year.

 

 

Samsung will soon report its financial performance for the fourth quarter of 2013, with analysts expecting the company to post a profit of 9.65 trillion won on sales of 60.5 trillion won – profits would grow by 9.2% compared to the period in the previous year, but they wouldn’t match the 26% growth shown in the third quarter of 2013.

 

Samsung’s mobile division will be responsible for a large chunk of profits, at 6.2 trillion won for the fourth quarter – 14% growth compared to the year ago period, but 8% lower than in the third quarter.

 

Analysts are worried Samsung won’t be able to enjoy similar margins in the mobile business as it did so far, as the company will have to cut prices to match similar offers from competitors, affecting high-end smartphone sales in the process.

 

http://www.androidauthority.com/samsung-starts-new-year-9-billion-market-value-drop-329178/

[MegaDave91]

Happy New Year!

[miyabwah]

Looks like everyone's losing money this year.

[Dragonzeanse]

Does this have anything to do with the fact that Samsung inundates the market with a ridiculous about of products (primarily phones) that nobody really cares about?

[Genizues]

This doesn't surprise me. Samsung just seems like they just want to be the first ones to market, and don't care about how many losses they take to do so.