Demand for Samsung’s Galaxy-branded smartphones is expected to help the South Korea-based company achieve a record profit of $5.9 billion during the third quarter, Reuters said Friday. Despite the success of its smartphone portfolio, which includes the popular Galaxy Note and the company’s flagship Galaxy S III handset, the company is worried the debt crisis in Europe will slow demand for its other products, such as televisions, refrigerators, washers and dryers. Thankfully, Reuters said Samsung’s mobile unit drives 70-percent of the company’s overall earnings.
“Our smartphones are flying off the shelves, with some outlets reporting 40-60 percent sales growth, but that’s distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro,” a Samsung executive told Reuters. “Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level.” Nho Guen-chang, an analyst with HMC Investment Securities, said he expects Samsung to ship 19 million Galaxy S III units this quarter.
Samsung is expected to report its Q3 earnings in late July.