Fewer smartphones sold is one reason for Samsung’s lower-than-expected profit
Sales are estimated at 58-trillion won, down 4.9% from 61-trillion won a year earlier
Seoul — On Friday, South Korean telecom giant Samsung Electronics flagged a 5.2% rise in its second-quarter operating profit from a year earlier, missing analyst estimates. Samsung’s operating profit is expected to come to 14.8-trillion won ($13.2bn) for the April-June period, higher than the 14.07-trillion won in the same period in 2017, but down from the record 15.64-trillion won of the previous quarter. The forecast came in at the low end of the market consensus, which averaged 15.3-trillion won. "It’s a bit disappointing," Ko Gyeong-beom at Yuanta Securities Korea said, noting that the company had posted expectation-beating operating profits in several previous quarters. Industry sources said smartphone sales were weaker in the face of mounting competition from rivals and increasing marketing costs for new mobile products.