U.S. Morning Call: Samsung puts the lid on spending
Friday, January 25, 2013 - 03:59
Jan 25 - Samsung Electronics turned cautious on 2013 capital expenditure for the first time since the global financial crisis in 2009.
▲ Hide Transcript
▶ View Transcript
-- morning call up Friday save some cautious on spending for the first time since the global financial crisis. As one of the industry's most aggressive spenders Samsung has ramped up capital expenditure every year since 2004 except in 2009. But this year it has no plans to splurge Samsung saying it will spend the -- out in 2013 as did last year. That comes in a whopping 21 point five billion dollars. So sports forcing the South Korean IT giant to cap expenses. Lots of things is battling with the PC market that shrinking for the first time in eleven years the global Smartphone market is also growing at a slower rate. And apple is moving to buy fewer of Samsung's microprocessors. Used in the iPhone and iPad. On the flip side Samsung which reported results today still also -- record fourth quarter profit. It also sold 213. Million Smartphones last year expand its share of the global market. To thirty point 4% from around 20% in 2011. According to strategy analytics. In comparison. Apple's market share came in just over 19%. Apple's stock down nearly 30% since mid September. Samsung shares up 12% for the same period. Speaking of apple the tech giant is cracking down on unfair working conditions at Foxconn plants. Audits from last year so it shows that the -- product maker. Stepped up inspection of its Asian based partners labor practices reviewing sites -- over what is happening workers make its gadgets. In case apple said it terminated its relationship with component maker pink to electronics. After discovering 74 cases of underage workers. Increase scrutiny comes after accusations of building profits on the backs of poorly treated workers in China. Moving out to markets what do week it has been the S&P closed up on Thursday for a seventh straight day stock futures now point to a higher open. Later today the Commerce Department releases a report a new home sales for December. Economist expects sales to continue climbing after hitting it two and a half year high a month earlier. And today's -- very special day for Treasury Secretary Tim Geithner who says goodbye to the Obama administration. He has served since the beginning of the president's first term his deputy -- wall and will serve as acting secretary until the senate approves a new -- Now for earnings it's a busy Friday we've got Procter & Gamble and Halliburton reporting before the bell. PNG posting higher quarterly profit with activist investor bill active in pushing for improvements. PG makes up 21% of his fund pershing square capital. Pacman has been at the head of the campaign against CEO Bob McDonald. Conference to be fired save the company has had lackluster earnings and McDonald took over in June of 2009. PG though has grown 35%. In that period. Turning to Halliburton the world's second largest oil field services company reported a 35% decline in profit. Take a lot of natural gas has led to a slowdown in US land now. And recapping earnings from last night some of those stocks moving in the premarket now. Microsoft profit dipped but windows sales jumped 24%. Starbucks reported stronger than expected sales in the US and Asia. And AT&T reported lower fourth quarter profit but saw subscriber growth be estimates coming in at 780000. That's a fair Friday morning call we've got interviews from the World Economic Forum in Davos on the web sites of -- check those -- -- follow us on Twitter at latest insider. Get our letters videos at Reuters dot com slash ways to me. I'm Lisa Bernhard this is way.
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code