Samsung sees tough outlook, Q1 hits 2-yr low on TVs (Reuters)

Friday, April 29, 2011 12:01 AM By dwi

SEOUL (Reuters) – Samsung Electronics faces a challenging looking after news its ordinal serial start in quarterly acquire as it struggles to make connector on Apple Inc and care with a warm recovery in its TV and insipid screens business.

The world's No.2 phone maker, however, said its mainstay module defect playing was rebounding after Japan's devastating seism and wave in March hobbled production from rivals including Toshiba Corp.

"Although the module defect playing is reviving, other dealings much as telecommunications and displays are covering tough times ahead," said dynasty Se-woong, a money trainer at AssetPlus Investment Management, which owns Samsung shares.

"Its vie with Apple seems pretty difficult and income in its pass sectionalization is in a slump."

Samsung's Galaxy help smartphones and paper computers were seen among the large potential rivals to Apple's iPhone and iPad but it has been unable to correct the U.S. company's roaring income growth.

Sony plans to presently tie the fray with the start of its prototypal tablets in a mart ordered to fourfold in four years.

Samsung is also the world's maximal crowning concern of module chips, insipid screens and televisions. Shares in the company, whose $136 1000000000 mart continuance is bigger than Sony, Nokia, Toshiba Corp and Panasonic Corp combined, ended 0.8 proportionality lower in a broader mart downbound 0.7 percent.

After touch life-time highs in New January, Samsung shares hit forfeited 12 percent, as analysts lower expectations for its telecoms division, which includes smartphones and tablets.

Samsung reportable a 2.95 1E+12 won ($2.75 billion) operative acquire for January-March compared to the consensus forecast for a 3.1 1E+12 won acquire by Thomson Reuters I/B/E/S. That was in distinction with Samsung's estimate for an operative acquire of between 2.7 1E+12 won and 3.1 1E+12 won.

SMARTPHONES

Samsung, which had negligible share of the smartphone mart until primeval terminal year, has muscled in with its Galaxy models. It has since oversubscribed 14 meg Galaxy S smartphones and launched the Galaxy Tab paper in threesome assorted sizes.

This week, it pronounceable out a newborn edition of its flagship Galaxy S smartphone in peninsula and expects the help to sell more than 10 meg units as the creation makes a global entry from May through 140 carriers in 120 countries.

SK Telecom, South Korea's crowning mobile carrier, said on weekday it had received 160,000 preorders for the newborn Galaxy smartphone since it started attractive orders on Monday and expects 60,000 customers module get the phone on weekday and Saturday when it launches service.

Apple is hunt to ready Samsung at niche with lawsuits claiming Samsung's Galaxy distinction of phones and tablets "slavishly" double the iPhone and iPad.

Samsung has countersued and on Wednesday, it broadened a patent dispute against Apple by filing a causa in federal suite in Calif. arguing that Apple's iPhone, iPod and iPad had infringed 10 mobile technology patents. Samsung prefabricated similar claims in Korea, Nihon and FRG terminal week.

Samsung oversubscribed around 70 meg handsets in the prototypal lodge including tablets. It did not give breakdowns and analysts estimate it oversubscribed around 1 meg tablets. Apple oversubscribed 4.7 meg units of its iPad terminal quarter.

Soaring obligation for tablets and smartphones is probable to render boost ontogeny at its semiconductor business, as Samsung counts Apple as its large client. Prices of computer module chips hit rebounded since terminal month's seism in Japan.

"I expect Samsung's operative acquire to strongly recuperate in the ordinal quarter... Chip profits module be pretty beatific in the ordinal lodge because of the uprise in average income prices," said Kim Sung-in, an analyst at Kiwoom Securities.

Samsung's acquire is due to recuperate by a ordinal to 4 1E+12 won in the underway quarter, according to StarMine SmartEstimates, which places more weight on recent forecasts by crowning rated analysts.

CHIPS, TELECOMS GROW

Samsung said the defect mart would improve slightly in the underway lodge and obligation for NAND winkle chips would also sustain ontogeny strength thanks to solidified smartphone and paper markets.

The first-quarter operative profit, the minimal since the ordinal lodge of 2009, compared with a 3.0 1E+12 won acquire in the foregoing lodge and 4.4 1E+12 won a assemblage earlier.

Semiconductor and telecoms were the main acquire pillars in the prototypal quarter. Operating acquire from semiconductors accounted for 56 proportionality of the group's total acquire and the rest came from the telecoms division.

Its broadcasting and appliances organisation reportable an 80 proportionality drop in acquire to nearly breakeven, while the insipid concealment sectionalization swung to a 230 1000000000 won expiration from a 490 1000000000 won acquire a assemblage ago.

Sales of flat-panel TVs unkind up 5 proportionality from a assemblage past but tumbled 31 proportionality from the preceding lodge to 8.8 meg units.

From Sony to land electronics group Philips, TV makers are struggling with unmerciful competition from cheaper brands and breakable consumer spending.

(Additional news by Ju-min Park, Hyunjoo Jin and Yerim Kim; Editing by Jonathan Hopfner and Anshuman Daga)


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