Samsung TV fortunes are heading south as demand for flat screens and computer chips dive.
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Just a day after it launched an exclusive music service here in Australia, Samsung forecast a year-on-year 14% dip in profits for Q3 in earnings guidance, just announced.
However, the forecast marks a 12% rise compared to the last quarter and beat analyst predictions.
Operating profit expected is now forecast in the region of 4.2tn won or $3.5bn -a 14% dip on 2010 figures.
Analyst were predicting a profit figure in the region of 3.4 trillion.
Dreary TV sales are blamed on poor global economy and dampened consumer sentiment, while poor chip demand was attached to slugglish PC growth.
However, Samsung’s thriving handset division has helped offset the poor TV business, according to analysts. Its Galaxy S II was the fastest selling phone ever in its native South Korea and has done the business globally.
“Its telecommunications business is seen very positive as shipments of smartphones and other high-end handsets expanded,” said Park Jong-Min of ING Investment Management.
However, look out iPhone, your days are numbered – analyst expect Samsung to report record profit from phone sales in Q3 surpassing Apple as the world’s biggest smartphone vendor in the third quarter.
“Samsung’s estimates are far better than expected. Its telecommunications business is seen very positive as shipments of smartphones and other high-end handsets expanded” Jong-Min added.
Another major factor which could see Samsung through the rough times is the absence of an new rival Apple iPhone 5, due to be launched on Tuesday.
However, this failed to materialise, leaving an open gap for the Galaxy maker to pounce with a brand new handset, and is due to launch new Nexus, 5.3″ Galaxy Note smartphones topped by a Windows OS handset, expected this month.
Just yesterday, comScore released data indicating Samsung is the top Android handset, ahead of LG and Motorola, while Adnroid is the numero uno OS with 44%.
“Given Apple’s relatively unchanged new iPhone, Samsung will have the opportunity to eat into Apple’s market share with its hardware build-up and growing software power until next year,” said Jang In-Beom of Bookook Securities.
But even Sammy’s biggest rival Apple are feeling the pinch, rumoured to be slashing iPad 2 orders by as much as 25%.
The news comes as the South Koreans are embroiled in an ugly legal patents battle with Apple in Australia, US and Europe.
The case is still ongoing in Sydney Federal Court and a decision could mean the difference between Samsung being able to launch its Galaxy Tab 10.1 here or not.
The giant is planning to open a pop-up store on Sydney’s George St to showcase its new $9.99 on demand music hub service today.