Samsung, the world’s largest maker of smartphones and semiconductors just issued a warning that its operating profit will decline by 29%. This is far below what analysts have been estimating and the latest sign of challenges hitting the tech industry (Apple issue a similar warning last week). Their revenue is expected to decline by 11%.
Samsung Smartphone shipments fell by 7% world-wide for the three months ended Sept. 30, compared with the prior year, their fourth straight quarter of declines, according to Canalys, a market research firm.
In a statement, the company blamed lower demand and tougher competition which made the firm to darken its outlook.
Looking at the share price, the stock has declined by more than 30% over the past 12 months.
Personally, I expect the price to go down even lower and consider buying once it reaches a support level at the next available trend line.
What are your views?