Seoul, South Korea (CNN) -- Samsung Electronics said
Friday it is expecting weaker third quarter sales as demand for flat
screen televisions and computer chips falls.
The South Korean technology giant forecasts an operating profit of
3.75 trillion won ($3.5 billion), down 13% from a year earlier. Profits
are expected to rise though from the previous quarter by 12%.
Analysts say Samsung's handset sales are helping weaknesses in other businesses.
"Semi conductors are still strong and even if they don't make as much
profit, it's not because they're less competitive, it's because the
semiconductor market as a whole went down. As for smart phones, they are
becoming comparable with Apple, they haven't surpassed Apple yet but
they are catching up very fast," Lee Sun Tae of Meritz Securities in
Seoul said.
Experts also say the strengthening US dollar against the Korean won
helps exports and the bottom line. Lee estimates a small increase in the
dollar's strength of less than one cent could result in an extra
$250,000 profit for Samsung. Lee believes the US dollar will continue to
gain strength for the rest of this year.
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