Samsung's estimates for its second quarter earnings missed forecasts, worrying investors despite the fact that it will be another record-breaking quarter at the firm. The Korean chaebol said that it expected operating profit of between 9.3tn South Korean won (£5.4bn) and 9.7tn won (£5.6bn), up eight per cent on the previous …
Just curious, but I wonder how much corporation tax Sammy pays - it would be nice to put it into context with the Apple/Google/Amazon crowd.
And what sort of cash pile must they be sitting on by now?
Apple**/google/amazon are resellers, they sell directly to the customer in the country where the customer lives but don't pay corporation tax in that country.
Samsung is a manufacturer. They do not have local sales, its the like of Carphone Warehouse, Dixons, Phones4u, O2, etc who retail to the customer in the local country.
**iTunes and apple stores.
Exactly, I don't care how much tax they pay anyway, the 20% VAT that is paid on (nearly) every item that is purchased by a consumer should be enough to run the country! well that plus income tax...
What the gov don't seem to realise is by having a high corporation tax, businesses will offshore as much as possible and make it seem all the work is done abroad, just to reduce the corporation tax...
If you have a low income tax, it means businesses are more likely to run businesses, meaning more jobs, more income tax & more VAT (as everyone spends money)
All you loose out on is a bit of corporation tax, which businesses try to avoid anyway...
I know it's a bit Apples (couldn't resist) and oranges, I was just trying to get a measure of whether the unwashed masses would judge Sammy to be a good corporate citizen, or a tax avoiding git. I'm sure Sammy have ample opportunity to play within the rules to manage their tax bills best if they wanted to, I just have no information is all.
Re: having a high corporation tax
Businesses will offshore as much as they can if the loaded rate is lower abroad. The local tax rate does not matter. Corporate tax has continuously decreased here while offshoring keeps increasing.
Tax, don't make me laugh.
It matters not, the bigger the business the bigger the accountancy department used solely to minimise tax liability. HMRC and the like just don't have the staff or brains to chase the convoluted snake trail of tax avoidance schemes.
Tho Samsung, Apple etc etc, this is money worth spending.
Instead, tax is squeezed out of small businesses because it is easier to chase and collect and bully.
...exactly why the economy went crashing down.
They'll drive up Samsung to Apple levels and then it will crash just like they did.
The whole idea of investments is to buy cheap, sell for more. You don't sell until things slow down and start to go into reverse, then everyone jumps off the sinking ship and hugely devalues the shares in the process. Only for it to start all over again.
Re: Stupid... No not stupid
Speculators love this kind of thing, it encourages short selling, if I were a betting man I'd say the rumours have been fuelled by the stock market and a couple of traders have made a mint out of this news.
97% of expected profits ain't bad, yet causes share price to drop 25%?
It is terrifying that the economy is in the hands of such panicky, unrealistic, people as analysts and investors.
Why are we paying attention to these people any more. The modern equivalent of Snake Oil salesmen.
I love how the market whips itself up into an orgy of over-excitement and expectation, and then it is Samsung who has to pay the price when they are brought back down to reality...
take Apple's ridiculously overvalued share price at one point as a prime example. Despite being an very successful company with an incredibly healthy balance sheet, Wall Street just expects more and more so pumps up expectations.
They don't like business as usual, they like massively over performance and lack of competition. So if Apple releases a new product that gives them a window of exclusivity (they had tablets to their own for a while) then the share price goes up.
Clearly Samsung are doomed
If they can't achieve unlimited, perpetual, predictable growth, for all eternity, what use are they to the investors?
Re: Clearly Samsung are doomed
Exponential. You left out exponential.
Obviously if these fly-by-night non-US outfits fail to achieve perpetual exponential growth, then their shares aren't worth the paper they're printed on.
Personally, I thought hitting a forecast to within three percentile was quite impressive. Especially in the notoriously turbulent tech sector... and during an industry wide slow-down too! Nice one Sammy.
Perhaps some "high-up" at bloomberg is after a cheap in.
Smartphones make up 70 per cent of the giant firm's profits
I always suspected £500 for a top-of-the-range smartphone carried a hefty profit margin.
It's a shame we can't back-engineer the Nexus 4 profit margin to see what the true cost of a high end smartphone is.
@Tomban: Just shows how over-optimistic these analysts had become. Their analysis results in over inflated share price estimates which then need to be pegged back when their hubris becomes apparent.