Samsung Estimates 9.5 Trillion Won (US$8.33 Billion) Profit in Q2 2013

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Image credit: Samsung Korea

Samsung has released its earnings forecasts for Q2 2013 ahead of its official announcement later this month. The Korean consumer electronics giant estimates profit of 9.5 trillion won (US$8.33 billion) on top of consolidated sales of 57 trillion won, up 47% from the year ago quarter.

The numbers, however, miss analysts expectations, as deepening worries of a plateau-ing smartphone market. Investors are concerned over shrinking margins and uncertainty of the industry’s ability to stay ahead of the innovation curve. Samsung’s mobile business generates 70% of the company’s total profit.

Samsung’s shares dropped 3 percent on Friday amidst the disappointing earnings estimate.

Samsung’s component business is expected to offset slowing smartphones sales in the second half, although this could still be short-lived.

Samsung spent more on marketing than R&D in 2012 for the first time in at least three years. The spending has not translated into better sales growth, as shipments have only seen rising between 4-8% in the second quarter.

The full earnings for Q2 2013 will be disclosed following the Board of Directors approval of the financial statements and quarterly reports, come July 26, 2013.

Source: Reuters

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