Samsung Q2 results boost through smartphones?

Samsung is expected to announce an operating profit boost due to smartphone sales in its Q2 results.
Written by Charlie Osborne, Contributing Writer

Samsung is expected to announce an operating profit boost due to smartphone sales in its Q2 results.

The South Korean firm, one of the world's largest manufacturers and developers of mobile devices and memory chips, will be releasing guidance documents for its second-quarter results this Friday. There will be full disclosure of the technology giant's performance at the end of the month.

Although a record-high operating profit has been predicted by analysts on the back of strong consumer demand for the Galaxy smartphone series, the company's share price has lost momentum since closing at its highest point on May 2.

Component shortages resulted in shipping delays for the Galaxy S III smartphone after its launch on May 29, which further encouraged investors and analysts to rein in enthusiastic predictions for Q2. The Chinese market is also a concern, as the market turns towards lower-end handsets in the world's second-largest economy.

However, over 60 percent of Samsung's operating profit -- which may be around the $6.15 billion mark -- is expected to stem from the mobile communications arm of the company.

Analysts, including Lee Sun-tae at NH Investment & Securities, lowered the predicted sales estimate of flagship smartphones from 7 million to 6 million phones in the second quarter after some mobile carriers delayed stocking and offering the devices. Total smartphone sales are approximated at between 48 million and 52 million phones.

The general consensus among analysts has suggested the company will post around $5.26 billion in operating profit in Q2. On Friday, Samsung's guidance notes will give an estimate of consolidated revenue and operating profit, but net profit and a breakdown will be saved until the end of the month.

An update on Galaxy S III smartphone sales is expected.

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