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Samsung Enters First Share Buyback Since 2007


News by Luke Jones on Wednesday November 26, 2014.

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Samsung
Samsung

Samsung has endured a torrid 2014 and for the first time in years the company's smartphone business faces an uncertain future. The company has taken steps to address tumbling profits, such as reducing its smartphone output in 2015 to make its products less conspicuous in the market. Also it is being reported that the Korean giant is about to relieve head of mobile and co-CEO J.K. Shin of his executive duties.

Another measure has been confirmed by Samsung as the company will issue a $2 billion share buyback, obviously a move to reply to a number of investors who are actively seeking more money from their investment in the company. Samsung has not activated a share buyback since 2007, and this is the company's largest ever buyback too. Sammy will reclaim 1.65 million common shares and 250,000 preferred shares and will be hoping to steady fluctuating share prices through the buyback. Stock price for the company has fallen 12% through 2014 against a global market decline of just 1.5%.

It was revealed this week that the company's core flagship, the Galaxy S5, has failed to meet sales expectation, with 40% less devices sold compared to the Galaxy S4 in some regions. Samsung has been forced to rethink its smartphone strategy and the next flagship, the Galaxy S6, will be a device built entirely from the ground up and will leave the general ethos of previous models behind. That handset is expected to land through the first quarter of 2015.

source: PhoneArena

 
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Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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