updated 05:47 pm EDT, Thu July 5, 2012
Europe debt crisis raises concerns though
When Samsung releases its financial results for the most recent quarter later in July, the electronics giant is expected to report nearly $6 billion in profit. That quarterly profit will be driven in no small part by the runaway success of the company's Galaxy S III smartphone. As Reuters reports, though, executives at the company are anxious about happenings in the euro zone, where debt concerns could threaten Samsung's sales successes.
Analysts expect that Samsung's April-June operating profit will jump 77 percent to $5.9 billion over the same quarter a year ago. This would represent a 14 percent increase over the January-March quarter, which previously held the quarterly profit record.
The mobile division has driven much of this, with its profits doubling from a year ago on sale of about 50 million smartphones. Mobile now accounts for more than 70 percent of Samsung's earnings.
Still, the company is concerned about the ongoing European debt crisis. Europe is the largest consumer electronics market for Samsung, and the company fears it may have to cut costs and increase prices if the value of the euro drops.