Samsung expects profit to hit record $9.4bn in third quarter

Samsung expects profit to hit record $9.4bn in third quarter

Summary: Korean electronics giant expects record profit in its third quarter – but not all handset manufacturers are feeling so cheerful.

TOPICS: Smartphones, Tablets

Samsung is predicting a record profit of 10.1tr Korean won ($9.4bn) for its third quarter.

In its pre-earnings guidance, the Korean electronics giant said sales would hit approximately 59tr won ($55bn) for the quarter. In contrast, the company's sales for Q2 2013 stood at 57tr won, and profit at 9.5tr won. In the third quarter of 2012 those numbers hit 52tr won and 8.1tr won respectively.

Samsung continues to be a dominant force in the smartphone market, as almost half of all smartphones sold in Europe are Samsung devices. While Samsung's portfolio also includes fridges, TVs and other consumer electronics, the company makes around two-thirds of its profits from smartphones.

Its Galaxy S4 flagship smartphone launched in April and since then the company has added a number of variations and is looking at the enterprise market as an area of growth.

It's also a major force in tablets – the Samsung Galaxy is the second most popular tablet in enterprise, according to research by Forrester.

When Samsung forecast lower than expected profits back in its second quarter, it prompted concerns that the smartphone market was becoming saturated. While no breakdown of Samsung's sales was given with the earnings estimates, it would seem that a slowdown isn't affecting the company's figures yet.

But not all handset manufacturers are performing alike. In contrast, Taiwan's largest smartphone maker, HTC, has confirmed its first quarterly loss following its profit warning in July amid amid intensifying competition and rising costs, partly from making its flagship handset HTC One.

 Further reading

Topics: Smartphones, Tablets

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  • Who says crime doesn't pay?

    • how so?

      details please?
    • Hmmm

      An Apple fanboi?
  • Frankly...

    ...I'm not sure I would believe anything Samsung says these days at face value.

    They just got caught red handed cheating on benchmarks again (with their phones running a benchmark-test-only program called "benchmark booster") and they flatly denied it.

    The program is on their phones, and they denied it. The truth is a very squishy thing at Samsung.
  • ZDNet Bizarro World

    It is not hard to find articles outlining Samsung's various nefarious tactics but not on ZDNet where they will have 5 articles about how the iPhone's fingerprint sensor was hacked among other generally negative Apple stuff. The Samsung reports on the other hand, are pretty positive.