Much has already been said and written about the challenges that Samsung faces in the global market, its mobile business has already been under significant pressure and analysts now expect that even the semiconductor business is going to feel the pressure. Samsung has been trying hard to climb out of this dip but so far its efforts have not paid off, and if CEO Kwon Oh-hyun is taken at his word, then 2016 may not bring much relief.
The company predicts that it’s going to struggle with global growth in this year due to difficulties in the business environment, that’s primarily due to uncertain global economic conditions as well as more competition in some of its key businesses which include mobile and semiconductor.
These comments were made by Samsung CEO Kwon Oh-hyun during a New Year’s address to employees, reiterating that low global growth in expected in 2016, with some of the uncertainty being contributed by financial risks for emerging markets. The CEO didn’t make any forecasts, though, he didn’t give any hard numbers.
Samsung has already said that it expects operating profit for the fourth quarter to be lower than the third quarter, blaming seasonally weaker demand for its component businesses as one of the reasons. It’s going to issue an official earnings guidance for the fourth quarter come Friday, January 8th 2016 which will offer a proper glimpse at how Samsung has done in the fourth quarter and how it’s expected to perform in the next quarter.
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