Samsung released two pieces of information, one good and one bad. The first concerns the effect sales of its Galaxy smartphone and tablets had on its earnings in the most recent quarter. Profits rose to $5.9 billion. The data confirmed what Samsung’s place as the number one cell phone manufacturer has done for the company.
The results also show the extent to which it has gained on Apple (NASDAQ: AAPL). But investors were troubled by Samsung’s guidance. The company became the most recent multinational to raise a caution flag about results in Europe. The economy there is too weak to support past forecasts, Samsung indicated.
The outlook should trigger concerns among consumer electronics firms that have neither Samsung’s strong brand nor its nearly limitless access to capital to drive huge marketing budgets.
Douglas A. McIntyre
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