Samsung Profits To Reach $8.3 Billion On $49 Billion In Revenue

Samsung will soon release its Q2 2013 earnings report, and the company is expected to fall below analysts’ expectations.

According to several reports, the company for the period ending June 30 earned 9.5 trillion won ($8.3 billion) on revenues of 57 trillion won ($49 billion).

Samsung’s earnings are up 47 percent year-on-year and 54-percent growth compared to the last quarter. The company’s revenues also increased by 20 percent year-on-year.

Revenue and profit numbers are only based on estimates at this time.

Samsung is confident in its soon to be released figures and the numbers listed above are still just estimates and they may change before the full financial report is released.

A total of 34 analysts compiled by Bloomberg had placed their expectations for Samsung profits at 10 trillion won ($8.75 billion).

The company’s lower than expected profits are likely based on slipping Samsung Galaxy smartphone sales. Analysts recently dropped their Samsung Galaxy S4 estimates from 75 million units to just 65 million.

A fund manager for KTV Asset Management said the company’s lower-than-expected earning “proved that the recent concern over the high-end smartphone market saturation and margin squeeze was for real.”

Slipping smartphone sales on new devices appears to be an industry trend as Apple’s iPhone 5 also failed to reach the type of sales levels enjoyed by prior devices. Much like Apple, the team at Samsung failed to release any major technology hardware upgrades for its new Galaxy S4 smartphone. The S4 also features a plastic design that many users have found cheapens the company’s device.

In the meantime, Samsung has just announced plans to invest $4.5 billion in five new research & development centers that will help extend the capabilities of current productions while also developing new gadgets and technology standards.

Do you think Samsung will turn around its sales figures with the help of new R&D and a growing mobile market?