Samsung Electronics's market cap falls below W200t

Samsung Electronics Co., South Korea's leading tech giant, saw its market capitalization fall below the 200 trillion won ($195.1 billion) mark for the first time in two years, data showed Wednesday, as its mainstay mobile unit continued to suffer amid the rise of Chinese rivals.

Samsung's market cap came to 198.34 trillion won on Sept. 2, falling below the 200 trillion won mark for the first time since Sept. 7, 2012. While it managed to return to 200.5 trillion won on Thursday, it slipped back to 198.9 trillion won on Friday.

The South Korean stock market was closed from Monday through Wednesday for the Chuseok holiday, or the major harvest festival.

Shares of Samsung Electronics closed at 1,201,000 won on Friday, down 24.17 percent from a record high of 1,584,000 won posted on Jan. 3, 2013.

Due to the falling share prices, Samsung accounted for 16.22 percent of the combined market cap of shares listed on the main bourse, the lowest level since the 16.36 percent posted on Feb. 17, 2012.

The recent losses came as Samsung Electronics' net income came to 6.25 trillion won in the April-June period, down 19.5 percent from the 7.77 trillion won a year earlier.

Earnings from its IT and mobile business division, the company's main revenue source, fell 29.6 percent on-year to 4.42 trillion won in the second quarter from 6.28 trillion won a year earlier.

The rising presence of Chinese players has been cited as a major reason for Samsung losing ground in the mobile division, as they have rapidly narrowed the gap with traditional leaders in the low-end sector.

Apple Inc.'s 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus, showcased Wednesday, are also set to emerge as potential threats for Samsung's earnings down the road, industry watchers added. (Yonhap)