Is Nokia's 2007 Decline a Lesson for Samsung Today?
Junko Yoshida, EETimes
1/24/2014 02:05 PM EST
MADISON, Wis. — In the results posted Friday for the fourth quarter of 2013, Samsung Electronics reported an operating profit of 8.31 trillion won ($7.7 billion), which missed analyst expectations by a whopping 20%.
Samsung also reported its first quarterly operating profit decline in two years -- an 18% drop from the $9.4 billion it reported for the third quarter. Though it posted a record $54.95 billion of revenue, the industry is focused now on its potential growth limits in the coming quarters.
The Korean company also issued a warning about anemic earnings in the current quarter. It's blaming "weak seasonality" in the IT industry early in a calendar year. It expects performance to pick up in the second half, but admitting a disappointment in advance is hardly good news.
Nobody is predicting the beginning of the end for Samsung, but this might be an opportune moment to compare its situation today with Nokia's back in 2007. Today the mobile division is responsible for more than half of Samsung Electronics' revenue and profit. Further, Samsung's share of the global smartphone market is more than 35%, and Nokia's share peaked at 39% in the third quarter of 2007.
E-mail This Article | Printer-Friendly Page |
Related News
- Innosilicon's Bitcoin ASIC powered by Samsung's Low Power FinFET technology to achieve record breaking performance
- Will Samsung's 2017 Semi Capex Deliver Knockout Blow to Competition?
- Is Mobileye-Intel New 'Wintel' of Auto?
- ARM CEO Warren East on IoT, Nokia, platforms, Europe's future
- Freescale’s makeover: How's it look?
Breaking News
- Siemens delivers end-to-end silicon quality assurance for next-generation IC designs with new Solido IP Validation Suite
- UMC Reports Sales for April 2024
- GUC Monthly Sales Report - April 2024
- Synopsys Enters Definitive Agreement to Sell its Software Integrity Business to Clearlake Capital and Francisco Partners
- Zhuhai Chuangfeixin: OTP IP Based on 55nm High-Voltage Process Successfully Qualified for Listing
Most Popular
- Synopsys Enters Definitive Agreement to Sell its Software Integrity Business to Clearlake Capital and Francisco Partners
- Fabless semiconductor startup Mindgrove launches India's first indigenously designed commercial high-performance MCU chip
- Arm Brings Transformers to IoT Devices
- Alphawave Semi announced today a refocussing of the Board of Directors after reaching the three-year milestone since the Company's IPO
- Zhuhai Chuangfeixin: OTP IP Based on 55nm High-Voltage Process Successfully Qualified for Listing