Weak profit forecast released by Samsung

<p>Samsung has released worse than expected profit forecasts.</p>

The share price of Samsung has dropped today (July 5th) after the company revealed its profit forecasts are worse than had been expected.

Stocks in the firm fell by almost four per cent after it announced it is expecting to make an operating profit of 9.5 trillion won (£5.5 billion) for the second quarter.

But this was lower than the figure closer to 10.1tn won that had been predicted by analysts and investors responded negatively to the news.

"The slowdown in its handset business appears to be worse than expected and the disappointing result simply reinforces the market view that Samsung's smartphone growth momentum is slowing," said Lee Sei-chul, an analyst at Seoul-based Meritz Securities.

Samsung shares are now down by more than 15 per cent on the start of the year, amid reports sales of its latest flagship device the Galaxy S4 have been slower than anticipated.

The share price of the firm ended the day down 3.8 per cent on the start of trading.

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