Samsung has been steadily progressing and improving its position not only in the smartphone market but also in its other businesses, trying to improve its profits further. The company had huge hopes with the recent launch of its flagship smartphone Galaxy S III. And in a way, these hopes were justified since Galaxy S III seems to be doing a roaring business.
Samsung recently overtook Nokia as the largest mobile vendor in the world. And it seems to be on its way to smash a few more records. The company has posted its quarterly earning preview forecast which has pinned the overall revenue of the company at a whopping $41.4 billion.
Out of this, the profits of the company come to a record amount of $5.9 billion, an amount of profit that the company has never been able to amass earlier. One of the key components of Samsung’s success is, without a doubt, its new flagship smartphone Galaxy S III. The sales of the smartphone were expected to hit 19 million by the end of this quarter.
According to an analyst, “Revenue is below our forecast, which suggests price pressure was more severe than had been expected in products such as televisions and home appliances. Earnings will be stronger in the current quarter as sales of the high-end Galaxy S III will increase dramatically and drive the telecom division’s earnings to above 5 trillion won.”
With the economy of Europe somewhat of a mess right now and Euro on a reeling course, Samsung’s business in the region has suffered. However, an anonymous Samsung executive stated, “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. Our smartphones are flying off the shelves, with some outlets reporting 40-60 percent sales growth, but that’s distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro.”
Source: Daily Tech