Net profit down 44 percent this quarter.
We’ve had the good news that Samsung plans to add DivX support to its TVs, so inevitably we had to expect some bad news, too, to counter it. A 44 per cent downturn in this quarters net profits in addition to a 14 per cent share value drop are a bit disproportional, though, if you ask me.
According to Reuters an ongoing downturn in the memory chip market and slowing sales of consumer electronics – Samsungs primary businesses.
Samsung’s executive in charge of investor relations, Chu Woo-sik, commented saying: “the market environment in the third quarter proved challenging amid rising costs and a downturn in the global economy.” Adding that “We foresee the coming months to be an even more challenging period.”
Chu Woo-sik also commented on Samsung’s announcement this week that it is withdrawing its $5.9 billion bid to buy Sandisk. “This is all about business. The situation can change…but for now we don’t have a plan (to make an offer for Sandisk).”
Hard times ahead all round, folks.