Published in News
Samsung cuts back capital development
We don’t need to invest so much
Buried in the figures of Samsung’s quarterly results was the news that the outfit does not think it wise to invest money in new plant.
For the first time in ages, Samsung is cautious on spending and will not increase its annual investment budget. This is because demand for computer chips and the smartphone is still slowing down. The company will have to make less hardware for its rival Apple too, which is also suffering.
Samsung, one of the industry's most aggressive spenders, has ramped up capital expenditure every year since 2004. Samsung made an operating profit to $8.28 billion in the last quarter. The 89 percent increase from a year earlier was in line with its earlier estimate.
Profit at its mobile devices division, which makes phones, tablets and cameras, more than doubled from a year earlier thanks to smartphone sales.The division accounted for 62 percent of Samsung's overall fourth-quarter profit, up from 55 percent a year earlier.