Samsung is having problems keeping their profits up lately (well, for a while now), but this Korean tech giant is still the world’s number one smartphone manufacturer along with Apple, at least according to the latest available information that is. Keeping that in mind, Samsung has a lot of cash laying around ready to be invested in whatever the company decides. According to the latest report from Reuters, Samsung intends to use its $56 billion warchest to fund growth including acquisitions. Reuters got that information from Samsung’s investor relations chief, which we can call a reliable source, of course.
“Dividends and other forms of shareholder returns are responsibilities that the company has for shareholders, so we will make efforts to meet them. But our primary objective is growth and that is what we are communicating to our shareholders,” said Robert Yi, Samsung’s head of investor relations, suggesting that investors should expect growth in 2015, as that’s company’s main goal. Mr. Yi also added the following: “We are primarily focused on M&A deals for companies that would be good fits to Samsung’s current businesses, and we believe that know-how and experience accrued from such transactions will make bigger M&A deals possible going forward.”
Samsung’s wealth was estimated at 61.8 trillion won ($56.14 billion) at the end of last year. Mr. Yi didn’t want to comment on plans for buyback or dividends though. Samsung planned to strengthen shareholder outreach in the past by making top management more available to investors and holding more public events. It remains to be seen will the company be able to do good on its promises in 2015 and actually get back on the right track during this year. Samsung’s profits went down approximately 30% last year and they have a rather tough goal ahead of them.
Their upcoming Galaxy S6 handset will be unveiled on March 1st at the company’s pre-MWC (Mobile World Congress) event in Barcelona. The Galaxy S6 Edge will quite probably launch alongside that device, and both of those handsets will be extremely important to the company’s profits this year. What are your thoughts here, do you think Samsung will be able to get back on the right path during this year?