Has the Fall of Samsung Begun?

Samsung  (NASDAQOTH: SSNLF  ) CFO Lee Sang Hoon recently warned that its second-quarter earnings may be "not that good." That's a pretty blunt assessment, but it's not without reason.

As Bloomberg reported, "Samsung's smartphone shipments fell to 78 million units in the second quarter from 87.5 million units in the previous quarter, according to estimates from IBK Securities Co." 

Not that good.

In the following This Week in Tech video, The Motley Fool's general manager, Eric Bleeker, and tech bureau chief Max Macaluso analyze Samsung's recent revelations, what recent Google  (NASDAQ: GOOG  )   (NASDAQ: GOOGL  )  announcements mean for the South Korean tech giant, and the company's next phase of growth.

Eric also notes that while Samsung might be struggling in smartphones, its lack of success is baked into its current share price. The company trades at an astoundingly low 6.5 times earnings. For comparison, Apple  (NASDAQ: AAPL  ) trades at about 15.5 times earnings. Back out Samsung's cash, and it trades at almost four times earnings. That's significantly cheaper than Apple ever was even when its shares were trading at 60% of their current level last summer. 

So, while Samsung's quarter might have not been "that good," investors are expecting the worst is yet to come. 

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!


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  • Report this Comment On June 30, 2014, at 2:15 PM, Oldfool103 wrote:

    May I be the first to say "Buh-by, Samsung.". Time to close up that whiteboard for copying Apple designs, functions, packaging, etc. Android and Google deserve Xiaomi.


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Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3012161, ~/Articles/ArticleHandler.aspx, 8/28/2015 1:37:59 PM

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Eric Bleeker

Eric started at The Motley Fool in 2008 working in the Tech & Telecom sector. Today, he's the General Manager of You can follow him on Twitter to stay up to date with his tech industry analysis.

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