Samsung Boosts Capital Spending as High-End Phone Demand Slows

Samsung Electronics Co. will invest $18 billion in its memory-chip and display businesses this year as the world’s biggest smartphone maker tries to ward off slowing demand for high-end devices such as its Galaxy S4.

Capital spending for those divisions will increase to 19.5 trillion won as the company reported second-quarter earnings that missed analyst estimatesNet income, excluding minority interest, rose 50% to 7.58 trillion, compared with the 8.02 trillion-won average of 24 analyst projections compiled by Bloomberg.

Supplying semiconductors and panels for its own devices and those from Apple Inc. and HTC Corp. helps Samsung offset slowing growth in the most-profitable segment of the $358 billion mobile-phone market. The higher capital expenditures come amid stalling demand at its television unit, the world’s biggest, and competition from Chinese brands including Huawei Technologies Co. that sell $100 handsets. Read more...