Monday 1 December 2014

Samsung exits fibre optics to focus on reviving smartphone business

Samsung expects first annual profit fall in 3 yearsSamsung unveils new UHD TV at CES, seeks fresh start in 2015
Samsung Electronics agreed to sell its fibre optics operations to US specialty glass maker Corning Inc, exiting another non-core business to focus on shoring up underperforming key areas like smartphones.
The terms of the sale, including plants in China and South Korea, weren't disclosed. Announced by both parties on Tuesday, the South Korean firm's second exit from a business line this quarter comes as it braces for its lowest annual profit in three years, squeezed by stiff competition.
Samsung, which was once the world's top maker of smartphones, has been caught between Chinese rivals like Xiaomi at the low end and Apple's iPhones at the top. Samsung Electronics' share of the global smartphone industry has shrunk year-on-year for the last three quarters.
"We have decided to sell our fibre optics business, in order to focus on our core business areas," a Samsung Electronics spokeswoman said. The company declined to comment on how much revenue the division generates.
South Korean Samsung also said in October it will halt its light emitting diode lighting business outside of its home country, which was also considered a non-core business.
Corning, which supplies glass for Samsung and Apple smartphones, said the deal will strengthen its fibre optics business in the Asian market.

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