Samsung puts Q4 operating profit at 6.1 tln won

Samsung gave an early outlook into its financial results for the December quarter, with operating income amounting to 6.1 trillion ($5.1 billion) and reflecting a sequential decline of 17.5%.

The profit marks a 15 percent increase over the same quarter in 2014, far short of the 80 percent year-over-year increase in operating profit Samsung reported in the third quarter of 2015.

Samsung Electronics’ fourth-quarter earnings will likely miss analysts’ estimates as chips and smartphones have faced stagnant sales. In other news, Samsung (PINK:SSNLF) published its preliminary Q4 2015 numbers, posting its second straight quarter of year-over-year profit growth after a string of quarterly declines.

Yoo Jongwoo, an analyst at Korea Investment & Securities, said sluggish iPhone sales pushed down demand for memory chips and mobile processors at Samsung. That was based on estimated sales worth 53.0 trillion Korean Won ($44B USD). Rival Apple Inc. has cut its order forecasts for iPhone components to suppliers in the past several months, according to people familiar with the company’s supply chain.

Shares of Samsung rose 0.1 percent to 1,164,000 as of 9:04 a.m.in Seoul.

Compared to other smartphone manufacturers with the exception of Apple, Samsung saw relatively better margins.

In a sign of increased emphasis on software, Samsung recently promoted Rhee In-jong, an executive who spearheaded the launch of the company’s mobile-payment service Samsung Pay, to head software development at its mobile unit.

Samsung’s stock price closed at a three-month low in the previous session.

The company’s employees have been urged to identify new ways for handling increasing competition in the company’s main businesses.

Last year, with smartphone sales sagging, Samsung Electronics said it would orchestrate a turnaround using the components that power electronics – things like chips, screens and circuits.

The consumer electronics business probably posted improved sales, backed by the year-end holiday shopping season.

The operating profit forecast is also below analysts’ expectations.