July 5, 2013 9:08am
Samsung will post record revenue of nearly $50 billion when it reports its Q2 earnings on July 26th, but the Korean giant likely won’t live up to analysts’ lofty expectations.
The company released a statement today that claimed, despite year-over-year revenue growth of 17% and income growth of 47%, it will not hit the levels, unrealistic or otherwise, by many in the financial world. Operating incoming is expected to come in at $8.3 billion, another record for the company.
Samsung announced in May that it sold 10 million Galaxy S4 devices, and recently it was said the company crossed over the 20 million mark for units shipped to retailers. Despite this, the company’s newest flagship is considered to be underwhelming the sales channels, not hitting the linear growth models that satiate investors. The Galaxy S3 had sold roughly 10 million by this time last year, and was well on its way to 20 million; the question isn’t whether the GS4 is selling well, but how quickly it’s selling well.
Samsung has saturated the market this year with different variations of the GS4, hoping to spur growth in niche markets. The GS4 Active, which was released last week on AT&T, is waterproof and sturdier than the original model; the GS4 mini is a mid-range device destined for Europe and Asia; and the GS4 Zoom is a phone with a huge retractable lens on the back.
The company will divulge all the details, hopefully to investors’ delight, on July 26th. Despite being one of the largest corporations in the world, the stock has taken a big hit in recent months, dipping from its high in May.