Samsung Galaxy S3 success leads to record profits for Samsung
Samsung is set to post record profits in Q2 due to huge success in the mobile market following the launch of its Samsung Galaxy S3 Android smartphone.
Samsung Electronics releases its full results at the end of the month, but its April-June earnings report indicates a record $ 5.9 billion profit and according to Samsung some mobile phone outlets are reporting a 40-60% sales growth. This follows recent comments from Samsung’s Head of Mobile JK Shin, that Samsung is expecting sales of the Samsung Galaxy S3 to reach 10 million in July.
According to Reuters however, this figure is under Samsung’s second-quarter revenue forecast. Despite success in the mobile sector, the overall outlook is less impressive, as sales of Samsung televisions and home appliances are struggling against weak prices, fall in demand and the weak Euro.
A Samsung executives who didn’t want to be named said: “Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the Euro fall further from the current level.”
While the outlook is bleak, Samsung is one of the few mobile phone manufacturers to post positive financial results, following disappoint news from RIM and HTC reporting its net profit halved. Apple is due to post its Q2 results later in the month.