Samsung Electronics is to sell its fibre optics division to US speciality glass maker Corning in a bid to revive its smartphone business. The terms of the sale, which was announced today (December 2nd), weren't disclosed.
"We have decided to sell our fibre optics business, in order to focus on our core business areas," a SamsungElectronics spokeswoman quoted by Reuters said.
The firm also said in October it will halt its light emitting diode lighting business outside of its home country. Corning said the deal will strengthen its fibre optics business in the Asian market, Reuters reports.
Samsung has recently posted disappointing third-quarter results, with profits tumbling 74 per cent year-on-year in its mobile business.
It also reported a 60 per cent drop in company-wide operating profit – its fourth consecutive decline and its lowest since the second quarter of 2011 – along with a 20 per cent decline in revenue for Q3 2014.
The company blamed higher marketing costs and competition for the fall in profits. It said it believes new smartphonelineups featuring new materials and innovative designs, as well as a series of new mid-to low-end smartphones with strong competitive positioning on both hardware specifications and price can help boost its results.
Samsung will focus in 2015 "on enhancing product competitiveness for each price tier and solidify longer term business fundamentals, in order to secure sustained growth and profitability."
Shares of Samsung Electronics rose 0.6 percent to 1,295,000 won (£743.3) at the close of trade in Seoul. The stock has dropped 5.6 per cent this year after a 9.9 per cent decline last year.
Find up to date information on the FTSE 100 and spread betting strategies at City Index