Samsung posted earnings in line with expectations early Thursday morning, noting a sharp slowdown in growth that the company believes will continue through 2016. Samsung said on Thursday that it earned a fourth-quarter operating profit of 6.14 trillion Korean won, or approximately $4.4 billion. The figure marks a healthy 16% gain, however Samsung said net profit tumbled 40% to 3.2 trillion Korean won, or $2.7 billion, due to nonoperating expenses.
The sharp slide comes in the same quarter that Samsung’s chief rival Apple posted a net profit that inched up to $18.4 billion, besting its own prior record and marking the most profitable three-quarter period any company has ever reported.
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Samsung said that while its December-quarter revenue came in at 53.32 trillion won, or $50.8 billion, it saw increased pressure in both its mobile and semiconductor businesses, which represent its two biggest businesses by a wide margin. Those struggles are unfortunately expected to continue into 2016.
“As for the outlook for 2016, Samsung expects single-digit percentage growth in both the smartphone and tablet categories amid softening demand and intensifying competition,” Samsung said in a statement alongside its earnings release. “Despite this challenging environment, the company will focus on increasing smartphone shipments and maintaining a double-digit margin through releases of competitive devices and an optimized product portfolio.”
