Samsung's record Q2 2013 results not enough to allay investor fears

Samsung, Samsung galaxy, Tech Digest news

galaxy-s4-active-official.jpgSamsung have revealed their Q2 2013 financial results. The company continue to go from strength to strength, posting an operating profit of 9.5 trillion won (£5.6 billion), a growth of 47% year on year.

Despite the record results however, Samsung shares still dropped nearly 4% following the results, with the company’s share price dropping 15% overall over the past month.

So, with such high profits, what’s causing the investor’s fears? It seems a potentially shrinking smartphone market has the money men sweating; market watchers had expected Samsung to hit operating profits of 10.16 trillion won, an enormous figure that even the popularity of Samsung’s extended Galaxy smartphone range couldn’t achieve.

For Samsung’s investors, the company now seemingly has to much of a stake in an increasingly saturated market: smartphones account for 70 percent of Samsung’s profits now, compared to just around half for Apple with their iPhone sales. And with Samsung’s business taking in white goods and a wider range of consumer electronics than their Cupertino rivals, the other areas of Samsung’s business will have to pick up the pace if investors are going to remain content.

HANDS-ON VIDEO: Samsung Galaxy S4 Active review

Gerald Lynch
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