Samsung may manage to both impress and disappoint at the same time with its Q2 earnings. The handset manufacturing giant is expected to post record profits yet again for the second quarter of 2013, but the company looks as though it will miss analyst expectations.
Samsung announced on Thursday that its operating profits will come in around 9.5 trillion won ($8.3 billion) for the three-month period ending on June 30. That marks a 47 percent increase for the Korean firm for the same quarter one year ago. Still, the projections missed analysts’ speculation, which forecasted an operating profit of 10.1 trillion won ($8.8 billion). The lofty goals were in order, considering despite the slight decline in the first quarter; Samsung had posted a string of five consecutive quarters of record profits.
One of the reasons that Samsung is likely to miss its market projections is the relatively disappointing sales of its newest flagship handset, the Galaxy S IV. More than a dozen analysts have altered their future projections for the company last month with worries that the flagship device was nearing market saturation. However, it appears that the company may have already reached that point.
“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”, Byun Han Joon, a Seoul-based analyst at KB Investment & Securities Co., told Bloomberg.
Samsung released the Galaxy S IV in April, recording more than 10 million units sold in May less than a month after the handset’s release. While that positioned the Galaxy S IV to be Samsung’s fastest selling handset to date, it fell short of Apple’s iPhone 5, which sold 5 million units in its first weekend.
For now Samsung has only released the preliminary numbers for its Q2 earnings. The company will announce full quarterly results on July 26.