Samsung warns of sharp sales and profit decline | The Verge

Also see Samsung Joins Apple in the Revenue Estimate Hurt Locker | Gizmodo

"The forecast has shocked investors and analysts, which CNBC notes were expecting 13.2 trillion won of operating profit from 62.8 trillion in revenue. Unusually, Samsung has issued a statement explaining its guidance; the company normally waits for the full earnings release before commenting on its performance in detail.

The two main factors in Samsung’s poor performance are identified as “lackluster demand in the memory business” and “intensifying competition in the smartphone business.” Memory shipments are said to have declined due to unforeseen inventory adjustments from Samsung’s data center customers, while the company says it spent more on smartphone marketing in the face of flat sales and strong seasonality. Results were also apparently affected by an unspecified “non-recurring expense.”"

Samsung warns of sharp sales and profit decline | The Verge