Samsung Q4 2015 Profit Falls From Q3 as Sluggish Sales Continue
Rob Enderle, principal of Enderle Group, agreed. "Samsung is in a world of hurt at the moment and they really didn't have much good news," wrote Enderle. "The market is soft in most of the product areas they cover and this is true of their components business as well. This isn't a competitive problem for them given that Apple's numbers [earlier this week] were also weak." Samsung is using some of its cash reserves to buy back its stock, "which temporarily offsets their valuation slide but does nothing strategically to fix the core problems suggesting they really don't know how to dig out of this and are just hoping the market comes around by itself (which will happen eventually)," wrote Enderle. "As a result, it doesn’t look like the firm, fundamentally, will improve much this year." Avi Greengart, an analyst with Current Analysis, told eWEEK that he has more confidence in Samsung than others.
"Samsung is a large, diversified conglomerate, and its division supplying chips and display panels to the PC industry is hurting," wrote Greengart. "However, Samsung's smartphone business has stabilized, and it is managing something few of its rivals can boast: significant profits."