Samsung could double earnings with Galaxy phone sales
As smartphone makers go Samsung is doing pretty well for itself, with estimates of record earnings for the company from its Galaxy line of phones.
The South Korean company is expected to rake in second quarter profits for its mobile division around 4.4 trillion won (about $ 3.9 trillion).
That’s more than double from the previous year, powered by sales of an estimated 50 million smartphones.
Of course, success is to be expected from the leading smartphone manufacturer with a healthy 25.7 percent of the handset market.
Every silver lining has a cloud
While Samsung’s mobile division is staying strong, the company as a whole isn’t as filled with good news.
The firm today released its pre-earnings guidance report, estimating revenue of 47 trillion won (about $ 41.4 billion) for the second quarter.
That falls short of the company’s initial forecast of sales reaching 50 trillion won.
Between price pressures and chip shortages, investors have gotten nervous and caused Samsung’s stock price to drop 15 percent over the last couple of months.
Samsung’s legal battle with Apple over banning the Galaxy Nexus certainly isn’t helping matters, with courts recently denying the firm’s request to postpone the ban.
Samsung is predicting better news all around for its third quarter though, in large part due to anticipated strong sales of the Galaxy S3.
A Reuters survey of 14 analysts agrees, predicting Samsung’s mobile division third quarter profits to reach between 7.3 trillion and 9.1 trillion won.
At this point, the numbers are all projections and predictions. Samsung will announce the official second quarter numbers later this month on July 27.