Samsung profit forecast fuels fears over smartphone sales
THE world's largest technology firm by revenue, Samsung, has fuelled concerns about falling demand for more expensive smartphones with a weaker-than-expected forecast for its second quarter profit.
Samsung has lost nearly €23bn in market value since March - it launched the Galaxy S4 a month later.
The mobile giant forecast of 9.5 trillion won in operating profit for the second quarter would be a record, lower than analysts expectations.
Shares in the company fell more than 4pc on the news - the biggest drop in more than a week.
"I think Samsung spent more on marketing expenses than expected because of the launch of Galaxy S4 smartphone, which led the company's results to miss the market consensus," HMC Investment Securities analyst Nho Geun-Chang said.
There are concerns the firm relies too much on IT and mobile, which accounts for 70pc of its operating profit, while the global outlook for this segement of the market is not so story.
A number of brokerages have downgraded Samsung on concerns hat the S4 is not selling as well as hoped.
(additional reporting Reuters)