Samsung is expecting a record second quarter profits, but is still falling short of the expected, as projected by the Analysts, possibly because the sales of Galaxy S4 fell short of expectations.
It said, on Thursday, that Samsung profits will come in around $8.3 billion for the three-month period ending June 30. Due to a 47 percent increase over the year-ago period, the operating profit came below the analysts’ average forecast of $8.8 billion.
Samsung had earned a string of record profits for five consecutive quarters, before a slight decline in the first quarter.
Byun Han Joon, a Seoul-based analyst at KB Investment & Securities Co., told Bloomberg, “It sharply missed the market expectation, and that worries me. The market was initially concerned about the third- and fourth-quarter results, but today’s news raises questions if the earnings are already in bad shape.”
Many analysts cut their projections for Samsung last month, thinking that the flagship smartphone was nearing market saturation.
In May, Samsung had sold more than 10 million units of Galaxy S4 in less than a month after the handset’s launch. It, later, faded in comparison with the Apple iPhone 5.
It is reported that the company will announce full quarterly results on July 26. This happens two days after handset rival Apple reports its first-quarter financial results.