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Expected to Get Weaker for Import Ban
Samsung Electronics’ Growth Momentum
Expected to Get Weaker for Import Ban
  • By matthew
  • August 14, 2013, 07:14
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Samsung Electronics’ 44-story headquarters building in Samsung Town, Seocho-gu, Seoul, South Korea. (Photo courtesy of Oskar Alexanderson/Wikimedia Commons)
Samsung Electronics’ 44-story headquarters building in Samsung Town, Seocho-gu, Seoul, South Korea. (Photo courtesy of Oskar Alexanderson/Wikimedia Commons)

 

It has been pointed out that Samsung Electronics’ US market share could be affected by the import ban on its smart phones and tablet PCs. 

The Wall Street Journal reported on August 12 that the growth outlook of Samsung Electronics, which has risen to the top of the US smart phone market by beating Apple, could deteriorate due to the import ban ruling by the International Trade Commission (ITC). Mirae Asset Securities analyst Do Hyun-woo said, “Apple has the possibility of catching up with Samsung in the US market before the end of this quarter.” Samsung recorded a market share of 34.9% in the United States in the second quarter of this year, 12.3 percentage points up from a quarter ago, while Apple posted 33.2% during the same period. 

The WSJ explained that the import ban ruling has to do with the sluggish stock price of Samsung as of late. The manufacturer’s market capitalization has fallen by over 33.5 trillion won (US$30 billion) since April as the Galaxy S4 sales volume has been falling short of expectations. The operating profits increased 52% from a year earlier in Q2, but the growth rate was four percentage points higher in Q1. 

The newspaper added, “The import prohibition targets old products such as the Galaxy S2 and the Galaxy Tab 10.1, and thus it is unlikely to significantly affect the profits of Samsung Electronics.” The ruling can be overturned bya veto from the Obama Administration. However, patent experts are predicting that the veto is unlikely, because the standard essential patents were not violated.