Samsung sees higher Q2 handset earnings, It also predicted earnings from its handset division would be higher in the current second quarter than in January-March, countering market concerns that tight supplies of the new Galaxy model and the weak global economy would pressure earnings at Asia's most valuable technology firm.
Shares in Samsung dropped 4.2 percent on Monday to a four-and-a-half month low, after more brokers cut their quarterly profit outlook, citing concerns over its chip and telecoms businesses. The benchmark KOSPI stock index was down 1.2 percent.
"The overall market condition was challenging due to euro zone issues and tight supply of components but (our) second-quarter results will be better than the first quarter," JK Shin, head of Samsung's mobile division, told reporters.
Profit from Samsung's mobile division nearly trebled in January-March to $3.6 billion, accounting for 73 percent of group operating profit.Looking beyond its current weakness in the chip sector, it appears investors are also worried that global macroeconomic woes may eat into handset sales in the second half," said Han Seung-hoon, an analyst at Korea Investment & Securities.
Samsung sees higher Q2 handset earnings
