South Korea’s Samsung Electronics and world’s largest technology firm by revenue said today in its earnings guidance it expected a record operating profit of $7.3 billion for the third quarter, pegging its success to its Galaxy smartphones range.
The estimate according to AFP was way above what analysts had expected with a predicted 26 percent growth in sales to 52 trillion won (US$ 47m) in the quarter even with its battle with Apple Inc.
The firm said this before its official results, which will be announcement later this month.
According to AFP the projected operating profit from July-September would be a 90.5 percent rise compared to the last financial year and way above the 6.7 trillion won (US$ 6m) quarter two.
Samsung’s operating profits have been rising steadily each quarter since early 2011 over its smartphone sales, even unseating Apple as the world’s top device manufacturer.
The firm estimates to have sold over 18 million units of the Galaxy S III for the third quarter and total smartphones and mobile phones sold at 59 million and 106 million units.
Some analysts, however, told AFP that the firm is headed for a less successful coming quarter.
They say the firm’s operating profit on its mobile business may fall over skyrocketing marketing costs as the mobile market gets more competitive by the day.
Lee Sun-Tae, an analyst at NH Investment and Securities said: “The third quarter may be the peak in terms of earnings. The fourth-quarter operating profit is expected to decrease… as slower profit at its telecom unit seems inevitable due to an increase in marketing expenses.”
Others, however, see it differently. James Song at KDB Daewoo Securities told AFP he expected the South Korean firm to maintain its mobile sales strength with the profits still high in the fourth quarter and just similar to third quarter.
The report also claims the firm’s flat-panel display and television businesses also helped in the generation of the stronger profits for its third quarter.