Samsung estimates disappointing Q2 profit

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10:19 AM July 5th, 2013

July 5th, 2013 10:19 AM

The 7-inch model of Samsung Electronics Company’s new Galaxy Tab 3 series tablet computer is seen in an undated photo provided by Samsung. Samsung Electronics Co., the second-largest maker of tablets after Apple, is putting three new tablets in the Galaxy Tab 3 series on sale in the U.S. on July 7, making its tablet computers look more like its hit Galaxy phones in the hope that the success of the smartphones can boost tablet sales. The cheapest, $199 device will have a screen that measures 7 inches (18 centimeters) diagonally. An 8-inch (20-centimeter) model will go for $299 and a 10-inch one for $399. AP Photo/Samsung Electronics Co.

SEOUL, South Korea— Samsung Electronics Co. estimates its April-June operating income at 9.5 trillion won ($8.3 billion), a record high for the world’s largest smartphone maker but short of expectations.

The South Korean company said in its Friday earnings preview that its second-quarter operating income jumped 47 percent from a year earlier. That is smaller growth than the market consensus of 10.2 trillion won by data provider FactSet.

Samsung said sales grew 20 percent to 57 trillion won ($50 billion).

It announces net income and details of quarterly financial results later this month.

Samsung says the latest iteration of its flagship smartphone, the Galaxy S4, hit 10 million sales in May, less than a month since its debut.

Analysts say heavy marketing costs probably weighed on Samsung’s mobile business despite the robust sales.

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