Samsung Electronics reported a record earning profit for its June quarter, however the number was still below the expectations of analysts, so the company’s stock went tumbling on Friday.
Shares of Samsung lost nearly 4 percent after Samsung released guidance ahead of its full June quarter results, which will be reported on July 26. The company revealed that its operating profit grew 47 percent year over year to 9.5 trillion won, or $8.3 billion.
Analysts had expected to see operating profits of 10.16 trillion won, and the June quarter report was just the latest disappointment for investors, who have seen the shares of the South Korean company fall by more than 15% over the last month.
Samsung is extremely dependent on its smartphone business, that segment accounts for some 70% of its total profit. In comparison, Apple’s iPhone accounts for around half of its total revenue.
Samsung’s investor disappointment mirrors Apple’s own recent struggles. The fourth quarter of fiscal 2012 saw Apple’s profits grow 25%, yet the company saw its shares tumble as investors grew increasingly concerned about the company’s future. The fears became a reality as the second quarter of Apple’s fiscal 2013 saw its profits fall for the first time in a decade.