Samsung has issued a sharp profits warning, and is forecasting that its second quarter profits will be badly hurt by a slowdown in smartphone sales, and local currency problems.

The company warned that its underlying operating profit is likely to fall by a quarter, to KRW7.2 trillion (US$7.1 billion) for the three months to the end of June.

That marks the third consecutive quarter of operating profit declines, but the size of the latest forecast has alarmed investors.

Although the company said that declining smartphone sales in an increasingly saturated and competitive market was in part to blame, it was also hurt by a strong South Korean currency that reduces the value of its profits from overseas.

The Korean currency has risen by more than 11 per cent against the US dollar and nearly seven per cent against the euro over the past year.

Taiwan smartphone manufacturer, HTC reported another decline in its quarterly revenues, but did manage to return to profit.

The company announced unaudited revenues of NT$65 billion (US$2.17 billion), down on the NT$70.7 billion a year ago.

The company managed to increase its quarterly profit to NT$2.26 billion from NT$1.52 billion, and a marked return to profit after the loss of NT$1.88 billion it posted three months ago.

HTC also posted an underlying operating profit of NT$2.43 billion, the first it has reported after three consecutive quarters of operating losses.

Nokia Networks announced two deals that will bolster the network implementation services it offers customers, with the US a particular area of focus.

The acquisition of SAC Wireless, an infrastructure and network deployment solutions vendor based in Illinois, is touted as complementing Nokia’s in-house expertise in the US and bringing “clear revenue synergies”.

Nokia said the addition of SAC should also allow it to address the complexities that often hinder rollouts “head-on”.

No financial details were given for the transaction, which is expected to close in the third quarter of the year, subject to regulatory approval.

Nokia also announced the acquisition of advanced geolocation capabilities from Nice Systems, to help with the planning and optimisation of mobile networks. The deal gives the infrastructure vendor access to tools, technical expertise and the rights to develop the technology further.

The technology uses 3D modelling to provide more accurate data in performance of multivendor networks. Nokia said the technology “helps to provide deep insight into traffic trends and the performance of mobile broadband networks”.

Mobily has signed a US$200 million agreement with Export Development Canada, to fund the purchase of equipment from Alcatel-Lucent to upgrade/enhance its network.

While the details of the supply deal were not revealed in the filing with the Saudi Arabia stock exchange, earlier this year Mobily and Alcatel-Lucent said they were working together for the first deployment globally of virtualised radio access network software, from the vendor’s NFV portfolio.

According to Alcatel-Lucent, Mobily was the first operator to launch TD-LTE services, and has the largest active HSPA base in the MENA region.

The new loan is described as Shariah-compliant, and also involved Credit Agricole, Societe Generale, and Bank of Tokyo Mitsubishi. It has a total tenor of 10.5 years, and will be used over a period of two years.

According to GSMA Intelligence figures, Mobily is the second-largest operator in Saudi Arabia, with just under 20 million connections, behind market leader STC, with 23.2 million.

Zain Saudi Arabia is the third-placed player, with 8.4 million connections.

Given the widespread commercialisation of LTE networks, technology providers are now looking to draw attention to the significance of TD-LTE in the development of optimal networks and services. Bernard Najm, Nokia Networks Head of the Global Business Programme for TD-LTE, describes the importance of the technology, and why network operators should be incorporating TD-LTE into their current network investment plans

Bernard Najm is Nokia Networks’ Head of the Global Business Programme for TD-LTE

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