Samsung is confident to hit a high quarterly income later this month with the constant improvement of its shares in the mobile market.
An operating profit amount of 6.7 trillion KRW (South Korean Won), or about 5.9 billion USD, is projected by Samsung to be realized within the quarter, posting its April-June guidance on Friday. The estimated increase of about 79 percent from the previous year is due to the consistently growing demand of Galaxy smartphones, with major complements to Galaxy S3 – the world’s most pre-ordered Android handset ever. The firm will be shipping over 10 million smartphones before July.
On the other hand, although Samsung remains optimistic regarding its sales predictions, the company admits that its shares dropped down by two percent based on its quarterly guidance. The company blames the currently decelerating economy of Europe, as well as matters regarding the legal dispute between Apple and Samsung’s Galaxy Nexus, which has been removed from store shelves. A U.S. District Court judge’s ruling favored Apple’s complaint to ban the smartphone for infringing its patents.
Samsung executives stated this week that the team is working on a contingency plan to address problems with the European crisis.
“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% sales growth, but that’s distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro,” explained Samsung’s spokesperson.
Google and Samsung are currently working on a software patch to bypass Apple’s injunction that bans the sales of Galaxy Nexus in the U.S.