Samsung sees solid demand for chips
 

Better mobile sales

Samsung predicted solid demand for its chips this quarter and stronger mobile sales after bringing forward the launch of its flagship Galaxy S smartphone.

However the memory maker warned that a stronger currency and costs related to new chip production would lead to a weaker profit result, after posting a 26 per cent jump in operating profit in the fourth quarter.

Samsung shares fell 1.5 percent in early trade on growing market jiters about an equity market bubble, despite the announcement of a one-time special cash dividend of $9.60 billion due to stronger than expected cash flow.

Chief financial officer Choi Yoon-ho said the level of cash increase during the last three years was mainly because we could not execute meaningful M&A activities.

“M&A activity of a meaningful size is likely in the next three years”, he added.

Analysts said Samsung will seek to secure future technology through a potential M&A, such as in future cars.

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