Samsung set for solid Q2; analysts unimpressed

Samsung set for solid Q2; analysts unimpressed

05 JUL 2013

Samsung Electronics said it is set to report solid results for the second quarter of 2013, although this was not enough to meet bullish analyst forecasts, and sparked some question marks over the performance of its smartphone unit.

The consumer electronics giant is anticipating an operating profit of around KRW9.5 trillion ($8.3 billion), up 46 per cent from KRW6.5 trillion in the second quarter of 2012. Sales are expected to come in at around KRW57 trillion, up from KRW47.6 trillion.

While in most cases a 46 per cent increase in profit would be a positive, some observers were anticipating a profit nearer to – or above – KRW10 trillion.

Samsung has already warned that global demand for smartphones is set to “dampen” this year, off the back of increased competition and growing penetration rates in the most mature markets.

This means that observers are looking for any sign that its growth is slowing. Being only preliminary figures, the numbers do not break-out how well the mobile unit has performed, and other businesses – for example its TV activities – may have provided drag.

With the quarter also seeing the global rollout of the company’s flagship Galaxy S4 smartphone, this device had been anticipated to drive profitability.

According to reports earlier this week, the Korea Times reported that the South Korean giant had shipped 20 million Galaxy S4 units, doubling the 10 million which was the last figure officially released by the company.

The company has also broadened its S4-branded product line, to offer a stock Android version, plus Mini and Active variants.

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Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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