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Leading electronics firm Samsung Electronics Co predicted a sharp decrease in quarterly profits on Tuesday, attributed to the robust South Korean currency and a slowdown in the smartphone market.
Operating profit for the second quarter was expected to be 7.2 trillion won ($7.1 billion), down by nearly 25 per cent compared with the corresponding period of the previous year.
“The earnings forecast is the result of the strong Korean currency throughout the second quarter as it appreciated against the dollar, euro and most emerging market currencies,” the South Korean company said.
The company also said there had been a slowdown in growth in the overall smartphone market, as well as increased competition in the Chinese and some European markets.
It would be the first time that Samsung’s quarterly operating profit has fallen below the 8-trillion-won-mark since the third quarter of 2012, Yonhap News Agency reported.
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