Samsung warns investors over lower-than-expected profits

PanARMENIAN.Net - Samsung has warned investors that profits during the second quarter of its current fiscal year could be even lower than expected, Digital Spy said.

The tech giant previously confirmed that a year-on-year downturn is likely, but finance chief Lee Sang-hoon believes the situation may be worse than initially forecast.

Lee publicly stated that Samsung's latest balance sheet "doesn't look too good", causing its stock to decline a further 1.9% on top of the 8.5% dip earlier this month,

Electronista speculates that the firm's financial woes are down to below-par sales of its Galaxy S5 flagship smartphone.

Although company head JK Shin recently announced that shipments of the device have exceeded 11 million units, there are doubts about whether this figure has translated into significant over-the-counter sales in the face of steep competition.

Samsung is also thought to be struggling to stimulate demand for its mid-to-low end smartphones in the developing markets, with Microsoft-owned Nokia tightening its grip on the sector.

The company will announce its second-quarter financial results next month.