On Friday, Samsung Electronics Co Ltd publicized a US$1 billion upsurge in investment. The company hoped for a strong revival through semiconductors. Samsung wanted the venture capital to compensate for the slumping smartphone growth as it deals with rising pressure to make latest devices.
Samsung dominated the high-end smartphone market together with Apple Inc. However, due to the slowing demand, the South Korean titan decided to venture on convincing investors that it could also crack the fast growing low-end market. Huawei Technologies Co Ltd and ZTE Corp from China were among its competitors in the inexpensive segment.
Samsung posted a 47.5% increase in April-June operating earnings on Friday. A record KRW9.53 trillion equivalent to US$8.54 billion was reported consistent with its projections. However, it earnings from the mobile division, which makes two thirds of its entire revenue, slumped 3.5% from the previous quarter. The mobile segment earnings were up 52% from 2012 but failed to meet the expectations.
"It is clear that the global smartphone market is stalling because of the slowing growth of high-end smartphones and rising competition from lower-priced smartphones," KTB Asset Management's fund manager, Ahn Young-hoe, said. KTB Asset Management currently owns Samsung shares.
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