Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Aerospace & Defense
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Campaign Polling
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Anatole Kaletsky
Reihan Salam
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Jack & Suzy Welch
Frederick Kempe
Christopher Papagianis
Mark Leonard
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Video
Editor's Choice
Successful test for land speed record
A British team behind a project to build a 1000mph car hold a successful test of the rocket they hope will push the vehicle beyond the sound barrier. Video
Facebook reaches one billion monthly active users
Austrian gravesites get digital twist
FDA cracks down on websites selling bad drugs
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Romney's strong debate showing puts Europe on edge
11:08am EDT
Obama gets tough on Romney, campaign considers changes
|
4:26pm EDT
U.S. coal stocks jump on Romney comments: analysts
11:15am EDT
Morocco denies entry to Dutch "abortion ship"
10:39am EDT
Turkey steps up Syria strikes, says will defend borders
|
3:07pm EDT
Discussed
235
France taxes rich and business to slash deficit
143
Romney’s strong debate showing puts Europe on edge
125
Chavez to Obama: I’d vote for you, and you for me
Sponsored Links
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Plastinated animals
German anatomist Gunther von Hagens has preserved animals using the same plastination technique as his "Body Worlds" figures. Slideshow
Zuckerberg's t-shirt
Facebook founder Mark Zuckerberg says he owns "maybe about 20" of the same gray t-shirt. Slideshow
A Galaxy glow, but Samsung's record profit run to end in fourth-quarter
Tweet
Share this
Email
Print
Related News
Samsung allowed to sell Galaxy Tab in U.S. as court lifts ban
Tue, Oct 2 2012
RIM buys itself breathing room for BB10 launch
Fri, Sep 28 2012
RIM delivers pleasant surprise to investors; shares surge
Thu, Sep 27 2012
Apple sells over 5 million iPhone 5, supply constraints loom
Mon, Sep 24 2012
Apple iPhone 5 fever rages despite grumbling over maps
Fri, Sep 21 2012
Analysis & Opinion
Chuseok and the world’s last Cold War frontier
Samsung goes after jury foreman in bid to reverse Apple verdict
Related Topics
Tech »
Media »
South Korea »
Related Video
Galaxy Note 2: Phone, tablet or both?
3:15pm EDT
Models pose with Samsung Electronics' new Galaxy Note 2 in Seoul in this September 26, 2012 file photo.
Credit: Reuters/Lee Jae-Won/Files
By Miyoung Kim
SEOUL |
Thu Oct 4, 2012 4:34pm EDT
SEOUL (Reuters) - Samsung Electronics will say on Friday that its July-September operating profit likely hit $6.8 billion, a record for a South Korean company, as strong sales of its Galaxy smartphones more than offset reduced orders for chips and screens from Apple Inc, the group's main rival and leading customer.
But a run of four straight record quarters will come to an end in the current three-month period to December as Samsung spends more on marketing to counter Apple's latest iPhone and other rival products in a crowded $200 billion plus global smartphone market.
This year's expected profit of 28 trillion won ($25 billion) will also trigger higher performance related payouts to many of Samsung's 206,000 staff early next year. And Samsung may have to set money aside this quarter if it fails in an appeal to overturn an August 24 U.S. court ruling that awarded $1 billion in damages to Apple for patent infringements by the Korean group.
From levels just ahead of that ruling, Samsung shares have since risen 6.2 percent, while shares in Apple, which last month launched the iPhone 5, have gained just 1.2 percent.
EARNINGS LULL
Analysts expect earnings at the world's top technology firm by revenue to decline until the second quarter of next year as a slump in computer sales and the weak global economy sap demand for chips and electronics products.
Samsung, valued at $197 billion and the world's leading maker of TVs, smartphones and memory chips, gives its July-September earnings guidance later on Friday, with its handset division likely to report more than doubled profits, as sales of Galaxy S III smartphones reached almost 20 million.
"The mobile business has been the main driver for Samsung, but its momentum will slow as differentiating to really wow consumers becomes even more challenging, and high-end models come under more price pressure as markets get crowded," said Lee Seung-woo, an analyst at IBK Investment & Securities. Lee predicted profit at Samsung's mobile business would dip to 17 trillion won next year from 18 trillion won estimated for 2012.
CHEAP AS CHIPS
Weak prices of Samsung's mainstay dynamic random access memory (DRAM) chips, used in computers and mobiles, will squeeze near-term earnings. Tablets and smartphones, the real growth areas, use far smaller memory storage.
Contract prices of DRAM chips dropped 14 percent in July-September, and now trade below what it costs most manufacturers to make them, analysts say. "Meaningful DRAM price increases may be difficult in the near term without more aggressive production cuts," Goldman Sachs said in a client note this week.
Samsung is expected to reduce its investment in chips next year due to the drop in demand, which could be bad news for semiconductor equipment manufacturers such as ASML. Kwon Oh-hyun, promoted to Samsung CEO in June, said late last month that the group has yet to finalise its 2013 investment plans.
Samsung is likely to say on Friday its July-September operating profit climbed 77 percent to 7.6 trillion won from a year ago, according to a Reuters survey of 16 analysts. That would be 13 percent higher than its previous record of 6.72 trillion won earned in the April-June quarter. Full third-quarter results are due towards the end of this month.
BRANDING BOOST
Profit from the mobile division is likely to have more than doubled to around 5 trillion won, with sales of some 58 million smartphones, including 18-20 million Galaxy S IIIs.
Samsung is beefing up its product line-up, with the latest phone-cum-tablet Galaxy Note expected to go on sale in the United States this month, and its ATIV smartphones that run on Microsoft's new Windows system to compete with Nokia's Lumia series.
Despite a bruising series of patent disputes and the reputational risk of the U.S. court defeat in August, Samsung's brand value has surged this year as it shipped more handsets and smartphones than any of its rivals. The value of the Samsung brand has jumped to 9th in the world - up from 17th last year - at $32.9 billion, according to brand consultancy Interbrand. That's more than Toyota Motor, but less than half of second-ranked Apple's $76.6 billion.
($1 = 1112.6500 Korean won)
(Reporting by Miyoung Kim; Editing by Ian Geoghegan)
Tech
Media
South Korea
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.