updated 06:12 am EDT, Fri July 5, 2013
Samsung to miss predicted 10 trillion won profit target by analysts
Samsung will be reporting another record-breaking quarter when it releases its financial results for Q2 2013 later this month, according to a newly-released earnings guidance statement. Despite the good news, the achieved profit is said to be far lower than financial analysts predicted, with a general belief that it has undersold the Galaxy S4 and other smartphones.
From April until June, the company believes it has earned approximately 9.5 trillion won ($8.3 billion) in profit, a 47-percent year-on-year rise and a 54-percent growth compared to the last quarter. Revenues of 57 trillion won ($49 billion) are also up year-on-year by 20 percent. Though Samsung is confident in its released figures, they are still estimates and can still change before the full financial report is released.
Analysts believed that Samsung was capable of reaching 10 trillion won ($8.75 billion) in the period, based on an average of 34 analyst estimates compiled by Bloomberg. Shipment estimates by analysts dropped from around 75 million to 65 million units, with a fund manager for KTV Asset Management suggested that the lower-than-expected profit "proved that the recent concern over the high-end smartphone market saturation and margin squeeze was for real."