SAMSUNG executives leapt to reassure investors yesterday over the company’s performance after its shares fell by 4.4 per cent to a four month low.
Since the launch last month of its latest smartphone, the Galaxy SIII, Samsung has been cursed with the blessing of overwhelming demand.
But the South Korean firm revealed it expects to top 10m Galaxy SIII shipments in July.
Reports that certain models of the new phone have not been available to consumers due to supply issues – coupled with recent downgrades by analysts citing concern over Samsung’s chips and telecoms businesses – sent investors scattering yesterday.
Analysts also pointed to a steeper-than-expected drop-off in sales of Samsung’s earlier products and growing competition from low-end manufacturers such as Huawei and ZTE.
But JK Shin, head of Samsung’s mobile division, assured reporters that the South Korean company is heading for growth.
“The overall market condition was challenging due to Eurozone issues and tight supply of components... but Samsung’s second-quarter results will be better than the first quarter,” Shin said.
Profit from Samsung’s mobile division nearly trebled to £2.3bn in the January to March reporting period, accounting for 73 per cent of group operating profit.
Despite a bumpy debut for the hotly anticipated Galaxy SIII, Shin predicted that the new device would reach 10m shipments in July, making it Samsung’s fastest selling smartphone.
Samsung sold 44.5m smartphones in the first quarter of this year, taking 30.6 per cent of the market, compared to the 24.1 per cent held by Apple, which sold 35.1m smartphones in the same period.