Samsung Electronics will be seeing dip in profit this quarter that will be announced this Friday. This can be attributed to the decline in chip prices, however, investors would be happy to see their telecom business boom with increase in handsets sale.
One of the reason cited by industry experts for the growth in smartphone business is the launch of Apple iPhone 4S that was not revolutionary, and left many fans disappointed.
“Major concerns for Samsung had been that its smartphone momentum will decelerate with Apple’s new iPhone, but that’s now less of a concern as the new iPhone failed to excite many,” said Kim Young-chan, an analyst at Shinhan Investment Corp.
“Samsung’s got broader product lineups and better offerings for the lucrative high-end segment such as 4G models and that will put it in a better position in the fourth quarter.”
Samsung which is in the race to outdo Apple in smartphone sale may soon overtake it as it has got a good line-up of Android based Galaxy series phones and upcoming bada devices. Smartphones may now account for one-third of Samsung’s handset portfolio, up from around 26 percent in the second quarter and 12 percent a year ago, lifting the company’s profit margin of its overall handset business to around 14 percent, analysts said.
More details on the profit can be found here.
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