- Obama takes aim at ‘corporate deserters’
- Dick’s Sporting Goods lays off 478 PGA golf pros
- Senators: Cease-fire must allow Israel to defend against rockets, tunnels
- Sierra Leone doctor fighting Ebola catches disease
- Iraq welcomes Russian fighter jets, helicopter gunships into ISIL fight
- John McCain laments: Obama’s ‘self-pity … is really kind of sad’
- GOP offer to fix VA gives $10 billion in emergency funds
- Paul Ryan offers to repair U.S. economic safety net with a single grant stream
- Kim Jong-un builds bond with Putin: $250M Russia-backed addition to key port opens
- Pope Francis meets Meriam Ibrahim, a Sudanese woman sentenced to death
Samsung 1Q profit falls 30 percent on chips, TVs
Question of the Day
SEOUL, SOUTH KOREA (AP) - Samsung Electronics said first-quarter profit fell 30 percent on declines in memory chip prices and reduced profitability in liquid crystal displays and flat screen televisions.
Samsung, the manufacturer of the Galaxy S smartphone and Galaxy Tab tablet computer, earned 2.78 trillion won ($2.59 billion) in the three months that ended March 31, it said Friday. That compared with net profit of 3.99 trillion won a year earlier.
The company said that smartphones were a bright spot during the quarter and also announced that it was raising the ante in a legal dispute with Apple Inc. by filing a new lawsuit against the U.S. company over alleged patent infringement.
Suwon, South Korea-based Samsung Electronics Co. is the top global manufacturer of flat screen televisions, memory chips and liquid crystal displays and ranks No. 2 in mobile phones behind Finland’s Nokia Corp.
Samsung posted record annual sales, operating profit and net profit in 2010. The company had warned, however, that the outlook for this year was uncertain given weak prices for components and consumer electronics products that hurt profitability at the end of 2010.
Samsung said sales in the first quarter rose 6.8 percent to 36.99 trillion won.
Robert Yi, a Samsung vice president, described the company’s business environment as “difficult” during the first quarter, citing rising raw material costs, financial market instability in Europe, Japan’s March 11 earthquake and the political situation in the Middle East.
Yi said the current second quarter was likely to remain an “adverse business environment,” though he was more optimistic for the second half of the year, partially on expectations for seasonal increases in demand for semiconductors and LCD panels.
“As for our company, currently we expect minimal negative impact as we have already secured most of our key components and we continuously look to diversify our supplier base,” he told analysts on a conference call.
Japanese companies are key suppliers of high-tech materials and components.
Mobile phone sales declined 14 percent to 70 million devices, but strong sales of smartphones and “high-end mobile devices” _ an apparent reference to tablets _ boosted profitability, the company said.
The global popularity of smartphones and tablets has skyrocketed and industry competition intensified since Apple released its hit iPhone in 2007 and iPad tablet last year.
Samsung said Friday in a statement that it has filed another lawsuit against Apple, this time in the United States, citing infringements of 10 patents covering mobile telecommunications and user interface technologies.
“Samsung is continuing to respond actively to the legal action taken against us in order to protect our intellectual property and to ensure our continued innovation and growth in the mobile communications business,” the statement said.
Shares in Samsung, which announced earnings results during morning trading, fell 0.8 percent to close at 893,000 won after declining as much as 2.2 percent earlier.
TWT Video Picks
Second- and third-stringers eye 2016 if front-runner stumbles
- 'We're coming for you, Barack Obama': Top U.S. official discloses threat from ISIL terrorists
- Obama orders Pentagon advisers to Ukraine
- NAPOLITANO: What if our democracy is a fraud?
- Hamas rejects Kerry's call for cease-fire; Fears grow others could join fight against Israel
- State Department indicates Nouri al-Maliki's days numbered as Iraq prime minister
- Inside China: Massive flight woes and a missile test
- Algerian plane diverted due to storms, second aircraft: 116 missing
- Evidence shows Russia firing artillery into Ukraine: Pentagon
- Obama family set to buy $4.25M desert home in California: report
- Norway expects imminent 'concrete threat' from ISIL terrorists 'within days'
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq