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.