Samsung predicts low global growth for 2016
It appears that Samsung’s troubles in the global market aren’t going to ease up in 2016, company chief executive Kwon Oh-hyun told employees in a New Year’s address that low global growth is likely to persist in this new year, with financial risks for emerging countries contributing to greater uncertainty. Samsung expects an overall tough business environment in 2016 due to weak global economic conditions as well as increased competition in the mobile and semiconductor business.
No specific forecasts were made in the comments by the CEO but they do come amid concerns that Samsung’s fourth quarter results may be weaker than expected. Many firms have already lowered their estimates for the operating profits that Samsung will post for the fourth quarter, Samsung’s official earnings guidance for the fourth quarter is due to arrive this Friday, though the company has already said that it expects operating profit to be lower than it was in the third quarter due to seasonally weaker demand.