WSJ.com reports that Samsung Electronics’ market value drops by almost $9 billion.
I keep getting told that Samsung does not have to worry about profits because it is a conglomerate with businesses in many different industries. And that Samsung can afford to get away with low profit margins.
The reality is far from that. With its mobile devices accounting for more than half of its operating profits, Samsung needs to seriously consider how it can grow its profit in the market.
Perhaps Samsung should look at the $14 billion it spent on advertising last year.