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Samsung CEO warns of tough year ahead
July 21, 2025
Samsungmay still be selling hundreds of millions of smartphones each year, but the electronics giant is already warning of another tough year. The company cites weak global economic conditions and increasingly competitive markets as reasons to reign in expectations for 2016.
Addressing employees in a New Year statement, Samsung vice chairman and co-chief executive officer Kwon Oh Hyun stated that uncertainty in emerging markets could further hurt the company’s revenue and profit margins, and he encouraged employees to adapt to weakening traditional hardware values to keep the company ahead. Asimilar messagewas recently conveyed by Samsung’s mobile chief, Koh Dong-Jin.
The statement comes amid growing concern that Samsung’s fourth quarter earnings may come in lower than expected. Korea Investment recently lowered its estimate to 6.4 trillion won ($5.41 billion) from 6.8 trillion won. Falling prices in the semiconductor and display markets are expected to hit Samsung’s profits particularly hard, as the company has been relying on additional income from these growing business sectors to offset the falling revenue from its mobile division.
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Samsung has been attempting to shake up its mobile unit to meet the challenge of shifting market conditions. The companyappointed Koh Dong-Jinas the new head of the division back in December. Samsung executives are also apparentlypointing some blame at its mobile software, which seems to be reflected in this recent statement, and there are said to be plans tocut smartphone shipmentsthis year.
Samsung is expected to issue its official earnings guidance for the fourth quarter this coming Friday.
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