Samsung woes set to continue as it issues 2016 business warning
The head of Samsung has lowered growth expectations for the first quarter of 2016 at the company citing strong competition and rising development costs.
Speaking on Monday, Samsung chief executive Kwon Oh-hyun told staff that the company will have to endure another year of low global growth as it deals with the financial risk of being active in emerging markets.
Oh-hyun also dropped a hint that the company’s October-December performance may be weaker than previously expected, according to Reuters.
He also predicted greater competition in the Korean giant’s main businesses with estimates for its Q4 profits dropping from 6.8 trillion won to 6.4 trillion won globally.
The warning comes after a difficult 2015 for Samsung after its global marketing campaign for the high-end Galaxy S6 series failed to spark an immediate surge in demand for the smartphone with sales falling short of expectations.
The electronics giant reported its fifth straight quarterly profit drop in July last year.
Samsung will announced its actual Q4 earnings for 2016 on Friday.