To me they are a short!

terça-feira, julho 08, 2014 David Barradas 0 Comments

Samsung's marketing budget has always been vast, but in the last quarter it was far larger than even the manufacturer itself would have liked. The company admits that it's been forced to spend extra money on promotions for older and lower-end devices that have been filling up its warehouses due to "weak demand." This dip in trade, combined with the extra spend on publicity, is causing the company's recent, gradual profit decline to quicken: it now expects to earn around 24 percent less this quarter than it did a year ago, with underlying sales down by an estimated 8-11 percent.

http://www.engadget.com/2014/07/08/samsung-warns-of-profit-drop-q2-2014/?ncid=rss_truncated

I wrote this in January in the Blog

To me Samsung is a outlier and they will not be able to keep up with Apple & other high tech american companies. To me Samsung is a short because i think it's much easier to invent/discover the next thing if you are in Sillicon Valley near Colleges & other companies that do what you do.

http://thoughtmeme.blogspot.pt/2014/01/no-convergence-at-all.html

I am not sure this recent, gradual profit decline from SAMSUNG is already a sign of what is coming. I think the only way to make money is through building a Brand, a reputation. I am not sure SAMSUNG has done that.

To me they are doomed. They are a Short