Samsung, the South Korean consumer electronics giant, is now drafting plans to undertake a strategic conference with investors at a scale unseen since eight years ago. The conference is aimed to address concerns as to the company's greatest period of innovation and revenue may have already come and gone.
The company is facing the fact of unmet analyst earnings estimates between April and June of this year. It announced last Wednesday of a meeting with 400 investors as well as analysts in Seoul scheduled for November 6 to discuss the longer-term growth strategy.
Samsung's reign in the smartphone segment had generated record profits in past years. This had helped the South Korean firm up end its arch rival Apple Inc. Analysts said the segment had already passed its dominance as the market continues to be saturated by competition from cheaper smartphones increases.
The shares in its most valuable technology company of Asia depended mainly on its mobile device sales, generating two-thirds of its overall profit. In the past three months, the profit margin of the firm had declined by 13%. Alongside this drop is the 3% drop in the South Korean stock market values.
According to a Samsung executive, who declined to be identified as details of the company's plans are still to be made public, "It's been a while since we last communicated our longer-term business plan and this year's event is largely aimed at discussing our latest strategy and vision for 2020."
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