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Samsung Electronics' Second Quarter Profits Estimated at $8.33 Billion But Misses Forecast

Jul 5 2013, 6:50am CDT | by , in News | Technology News

Samsung Electronics' Second Quarter Profits Estimated at $8.33 Billion
 
 

Samsung Electronics has given a sneak preview of its second quarter profits. They top out at a cool $8.33 billion. This is a whole lot of cash. However, there are doubts regarding the continued growth in sales of the Galaxy S4 as it misses analysts forecast.


The technology giant, Samsung has made a winning strike on the cash nexus. It amounts to 9.5 trillion Korean Won/ $8.33 billion and the dollar bills just might see it through. A major reason for this lucrative earning record is the sales of its Galaxy S4 Series. The second quarter earnings for 2013 are much better than the incoming revenue for the last quarter. By the way, that was $6.4 billion as stated by Reuters. In fact, it is $3 billion more than was raked in during the second quarter of 2012. Samsung is proud of its hard working staff and administration. And so it should be. Certain legal guidelines in South Korea prevent the public disclosure of earnings. So a median value was given by Samsung.

The only hitch in the way is its Galaxy S4. Paradoxically, the sales of this device seem to have reached their peak. But this is all just speculation. How it will actually be in reality is something on which all bets are off. Samsung sets high goals for itself. It had estimated that the profits would amount to 10 trillion Won in its earnings guidance reprot released today. This it missed by a wide margin. Its Galaxy S4 Series allowed it to snatch the #1 position in the US market from Apple Incorporated. Apple’s iPhone lost out to Samsung.

Meanwhile, the luxury smart phone market is at its peak point. The way from here may be down. Already there has been a deficit of two million smart phone shipments. This is an alarming trend for Samsung which will have to see to it that sales remain in the stratosphere. Samsung’s televisions too face some pretty stiff competition from rival companies. While the unusually high expectations were not met, the overall scenario is not so gloomy. The only thing that irks Samsung is that it may go down the path of Apple Incorporated which was a world leader once upon a time.

Companies have to stay lean and hungry if they are to survive in the piranha infested seas that form the global economy. The flagging sales of its S4 and falling of shares by 3% were a bit dismal. Yet Samsung is a flexible conglomerate that thrives on chaos. It may just re-emerge a winner from the debris. For one thing, it will have to keep its options open. Instead of just catering to the high end market it will have to look to the low end segment of the global population too. That may just be the change it needs to make for some serious growth and profitability. 

Image Credit: Getty Images

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
Sumayah Aamir (Google+) has deep experience in analyzing the latest trends.

 

 

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