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Samsung Boosts Capital Spending as Phones Fail to Revive Growth

  • Third-quarter profit misses estimates on tepid high-end sales
  • Earnings in the December quarter forecast to decline
An attendee tries a video game on a Samsung Galaxy Gear Virtual-Reality (VR) headset.

An attendee tries a video game on a Samsung Galaxy Gear Virtual-Reality (VR) headset.

Photographer: Tomohiro Ohsumi/Bloomberg
Updated on

Samsung Electronics Co. said it will increase capital spending after posting profit that missed analysts’ estimates as price cuts on new Galaxy S6 smartphones failed to sway consumers from buying iPhones.

Capital expenditure will rise 14 percent to 27 trillion won ($24 billion) this year, the company said Thursday. Net income, excluding minority interests, was 5.31 trillion won ($4.7 billion) in the third quarter with profit to fall in the current period, Samsung said.