Samsung Guidance Causes a Stir

Samsung is set to report record operating profits of about 9.5 trillion Korean won (US$8.32 billion) when it details its full financial results for the second quarter on July 26, but that hasn't stopped analysts and investors worrying about the smartphone market leader's near-term future. (See IDC's Q1 smartphone market share press release.)

The company issued a second-quarter pre-earnings guidance statement early Friday, noting that it expects to report sales of about 57 trillion won ($49.9 billion) and an operating profits in the region of 9.5 trillion won.

But that wasn't enough to satisfy the financial analyst community, which was expecting higher operating profit margins and which is also worried that Samsung might have peaked in the smartphone market. (See this Bloomberg report and this Reuters article.)

It seems sales of the company's S4 smartphones have not quite fulfilled expectations and there are some concerns that the likes of Huawei Technologies Co. Ltd., which has just appointed a new head of smartphone sales and marketing, might be an increasingly competitive threat. (See Huawei Snaps Up Ex-Nokia Exec.)

-- Ray Le Maistre, Editor-in-Chief, Light Reading

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