Samsung profits sore thanks to smartphone sales

Things continue to look pretty good for Samsung. They haven't officially reported their 2nd quarter results yet, but they are estimating that profits will hit 6.7 trillion Won ($5.9 billion), which is a 79% increase over a year ago. As far as sales goes, they're estimating it to be 47 trillion Won ($41.4 billion), which is actually below analysts expectations of 50 trillion Won.

Samsung probably sold 50 million smartphones for the quarter, but analyst estimates were expecting 53.4 million units. The drop isn't the lack of success of the Galaxy S III. It's because there were lower-than-expected sales of the lower end phones in emerging markets and competition from Huawei and ZTE. As far as the Galaxy S III goes, they probably moved 7 million units in the quarter, which is good, but they actually could have moved more if it weren't for a shortage of components. This shortage is only temporary and they expect to move 19 million units during the current quarter.

Full press release after the break:

Samsung Electronics' Pre-Earnings Guidance

On July 6, 2012, Samsung Electronics disclosed its '12. 2Q consolidated earnings estimate as follows.

 Sales: Approximately 47 trillion Won
– Operating Profit: Approximately 6.7 trillion Won

The above estimate is provided for the convenience of investors, before the earnings results are finalized. Domestic disclosure regulations do not allow earnings estimates to be given in a range. Therefore, the above figures are the median of the earnings estimate range given below.

– Sales: 46 ~ 48 trillion Won
– Operating Profit: 6.5 ~ 6.9 trillion Won

*The above figures are consolidated earnings estimates based on K-IFRS.
And they are provided for the convenience of investors only, before the external audit
on the financial results of our headquarters, subsidiaries and affiliates is completed.

source: bloomberg