2Q earnings 'not that good' says Samsung CFO

2Q earnings 'not that good' says Samsung CFO

Summary: Despite having sold about one of every three smartphones shipped globally last year, Samsung is dabbling in luxury televisions and investing in memory chip production to diversify away from smartphones and tablets.

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Samsung's second-quarter earnings are expected to be "not that good," according to the company's Chief Financial Officer Lee Sang Hoon.

The comment was first reported by South Korean media and later confirmed by a company spokesperson.

Analysts had been expecting that the world's largest smartphone manufacturer would post operating profits of around $8.2 billion in the three months ending June, but these comments suggest that earnings will be lower than predictions.

Samsung has been feeling the pinch lately, squeezed between the Apple iPhone at the high end of the smartphone market, and budget Chinese handsets at the other. The pressure is such that it resorted to bundling as much as $600 worth of extras with its flagship Galaxy S5 in order to encourage sales.

Despite having sold about one of every three smartphones shipped globally last year, Samsung is dabbling in luxury televisions and investing in memory chip production to diversify away from smartphones and tablets.

Samsung's Q2 earnings were expected to be released at the end of July, but the company is now expected to make a preliminary report by next week. 

Topics: Mobility, Smartphones

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4 comments
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  • Not to Worry

    The Samsung smartphone earnings will improve the quarter after the iPhone 6 is released as they will only then have "the next big thing"
    Gr8Music
  • Samsung is dabbling in luxury televisions?

    "Samsung Leads with 26 Percent of Global Smart TV Market Share in Q1 2013"
    http://www.strategyanalytics.com/default.aspx?mod=pressreleaseviewer&a0=5400

    Samsung are one of the market leaders in most TV sectors so how is this dabbling?
    AJRimmer
    • Luxury Televisions

      He said luxury televisions.

      Obviously, after spending years in the Samsung labs and after having been finally introduced to the public in their Galaxy phone series, Samsung's gold plastic luxury finish has finally made it to their television line.
      varase
  • samsung tvs

    I owned a samsung tv and the piece of crap went belly up after 2 years. I will never buy one of their tvs again. I am so put off I am thinking about getting rid of the samsung phone I have.
    Look online for smasung tv problems and see how many issues there are with them
    ljmace1953